Company: ZCARW
Filing Date: 2025-03-28
Form Type: DRS
Source: 0001013762-25-003498
Chunk: 290

Company: Zoomcar Holdings, Inc.
Filing Date: 2025-03-28
Form: DRS
Chunk 290
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 provided herein regarding the U.S. federal
income tax consequences to U.S. holders resulting from the exercise of a Series A Warrant on an alternate cashless exercise basis. Accordingly,
U.S. holders should consult their own tax advisors regarding the tax consequences to them of the receipt, exercise, reset of the exercise
price, lapse or disposition of Series A Warrants.

Exercise of Series A Warrants

A U.S. holder generally will
not recognize gain or loss upon the acquisition of a common share on the exercise of a Series A Warrant for cash (unless cash is received
in lieu of the issuance of a fractional common share). A U.S. holder’s tax basis in a common share received upon exercise of the
Series A Warrant generally will equal the sum of the U.S. holder’s tax basis in such Series A Warrant and the exercise price paid
by such U.S. holder on the exercise of such Series A Warrant. It is unclear whether a U.S. holder’s holding period for the common
share received will commence on the date of exercise of the Series A Warrant or the day following the date of exercise of the Series A
Warrant. If the acquisition of a Pre-Funded Warrant is not treated as an acquisition of common shares for U.S. federal income tax purposes
as described above in under the heading “Treatment of Pre-Funded Warrants”, then the foregoing rules described in this paragraph
would also apply to the exercise of a Pre-Funded Warrant. U.S. holders should consult their own tax advisors regarding the exercise of
Series A Warrants in light of their particular circumstances.

Expiration of Series A Warrants without Exercise

If a Series A Warrant lapses
unexercised, a U.S. holder generally will recognize a capital loss equal to such holder’s tax basis in the Series A Warrants. Any
such loss generally will be a capital loss and will be long-term capital loss if the Series A Warrants are held for more than one year.
Deductions for capital losses are subject to complex limitations under the Code. U.S. holders should consult their own tax advisors regarding
the expiration of Series A Warrants.

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Certain Adjustments to the Series A Warrants

The terms of each Series A
Warrant provide for an adjustment to the number of common shares for which the Series A Warrant may be exercised or to the exercise price
of the Series A Warrant. The characterization described