Company: GDSTR
Filing Date: 2025-08-20
Form Type: 10-Q
Source: 0001213900-25-078650
Chunk: 92

Company: Goldenstone Acquisition Ltd.
Filing Date: 2025-08-20
Form: 10-Q
Item: Item 8
Chunk 92
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to be derived from tax loss and tax credit carry forwards. ASC 740 additionally requires a valuation allowance to be established when
it is more likely than not that all or a portion of deferred tax assets will not be realized.

While ASC 740 identifies usage of an effective annual tax rate for
purposes of an interim provision, it does allow for estimating individual elements in the current period if they are significant, unusual
or infrequent. Computing the effective tax rate for the Company is complicated due to the potential impact of the timing of any potential
business combination expenses and the actual interest income that will be recognized during the year. The Company has taken a position
as to the calculation of income tax expense in a current period based on ASC 740-270-25-3 which states, “If an entity is unable
to estimate a part of its ordinary income or loss or the related tax provision or benefit but is otherwise able to make a reasonable estimate,
the tax provision or benefit applicable to the item that cannot be estimated shall be reported in the interim period in which the item
is reported.” The Company believes its calculation to be a reliable estimate and allows it to properly take into account the usual
elements that can impact its annualized book income and its impact on the effective tax rate. As such, the Company is computing its taxable
income or loss and associated income tax provision or benefit based on actual results through June 30, 2025 and 2024.

ASC 740 also clarifies the accounting for uncertainty
in income taxes recognized in an enterprise’s financial statements and prescribes a recognition threshold and measurement process
for financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. For those benefits
to be recognized, a tax position must be more-likely-than-not to be sustained upon examination by taxing authorities. ASC 740 also provides
guidance on derecognition, classification, interest and penalties, accounting in interim period, disclosure and transition.

The Company recognizes accrued interest and penalties
related to unrecognized tax benefits as income tax expense. There were no unrecognized tax benefits and no amounts accrued for interest
and penalties as of June 30, 2025 and March 31, 2025. The Company is currently not aware of any issues under review that could result
in significant payments, accruals or material deviation from its position.

The Company has identified the United States as
its only “major” tax jurisdiction.

The Company may be subject to potential examination
by federal