Company: ZCARW
Filing Date: 2025-06-30
Form Type: 10-K
Source: 0001213900-25-059675
Chunk: 908

Company: Zoomcar Holdings, Inc.
Filing Date: 2025-06-30
Form: 10-K
Item: Item 1C
Chunk 908
---
 the Indian jurisdiction, a period of 3 financial years remain open to assessment by tax authorities
or a period of 10 financial years if the assessing officer has evidence that undeclared income exceeds certain limit.

The Company has created valuation allowance on the deferred tax asset resulting from such losses due to Company’s history of past losses
and lack of conclusive evidence to support the view that sufficient taxable profit will be generated in the future by the Company to offset
such losses.

Zoomcar Holdings, Inc. files tax returns in the
U.S. federal, various state, and foreign jurisdictions. In the normal course of business, the Company is subject to examination by tax
authorities. Our major tax jurisdiction is in India. The Indian tax authority is currently examining our 2016 through 2023 tax returns.
There are other ongoing audits in various other jurisdictions that are not material to our financial statements.

F-38

ZOOMCAR HOLDINGS, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

27Income taxes (Continued)

The Company has filed appeals against the above orders before higher authority.

The Company has not recognized any uncertain tax
position for the year ended March 31, 2025 and March 31, 2024, respectively. The Company believes these orders are unlikely to be sustained
at the higher appellate authorities.

Deferred income taxes reflect the net tax effects
of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used
for income tax purposes. The Company’s deferred income tax assets and liabilities as of March 31, 2025 and 2024 consisted of the
following:

    Year ended 
    March 31, 
2025  
    March 31, 
2024 
  
    Deferred tax assets: 

    Net operating loss carryforwards 
     39,199,954  
     44,873,459 
  
    Trade Receivable 
     3,358  
     - 
  
    Assets held for sale 
     110,941  
     - 
  
    Restricted stock units 
     11,950  
     - 
  
    Provision for expenses 
     1,062,347  
     - 
  
    Gratuity 
     76,127  
     - 
  
    Leave encashment 
     59,273  
     - 
  
    Bonus 
     52,526  
     -