Company: ZCARW
Filing Date: 2025-02-14
Form Type: 10-Q
Source: 0001213900-25-014437
Chunk: 56

Company: Zoomcar Holdings, Inc.
Filing Date: 2025-02-14
Form: 10-Q
Item: Part I, Item 1
Chunk 56
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NOTES TO CONDENSED CONSOLIDATED
FINANCIAL STATEMENTS (UNAUDITED)

    26
    Income taxes

The components of (loss)/gain before income taxes consist
of the following: 

    Three months ended  December 31,  
    Nine months ended  December 31, 
  
    (In USD) 
    2024  
    2023  
    2024  
    2023 
  
    Domestic 
    $(5,889,163) 
    $19,809,584  
    $(8,072,027) 
    $(11,367,084)
  
    Foreign 
     (2,032,900) 
     (5,384,145) 
     (5,733,590) 
     (15,390,894)
  
    Profit/(Loss) before income taxes 
    $(7,922,063) 
    $14,425,439  
    $(13,805,617) 
    $(26,757,978)

The Company has computed income tax expense/(benefit) for the three
months and nine months ended December 31, 2024 and December 31, 2023 by using a forecasted annual effective tax rate and adjust for any
discrete items arising during the period. The Company has recorded $NIL tax expense for all of the periods. Our effective tax rate was
0.00%, 0.00%, 0.00% and 0.00% for the three months and nine months ended December 31, 2024 and December 31, 2023, respectively. The Company
has computed a valuation allowance on deferred tax assets for the nine months ending December 31, 2024 and hence no deferred tax asset
is recognized as of December 31, 2024. The effective tax rate differs from the statutory tax rate of 21% for the years ended March 31,
2024 and 2023, due to changes in valuation allowance on the deferred tax assets.

The Company 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 2022 tax returns.

As at December 31, 2024, tax returns for years ended March