Company: ZCARW
Filing Date: 2025-05-05
Form Type: S-1
Source: 0001213900-25-039778
Chunk: 299

Company: Zoomcar Holdings, Inc.
Filing Date: 2025-05-05
Form: S-1
Chunk 299
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 F- 38 ZOOMCAR HOLDINGS, INC. NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

| 26 | Income taxes |

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

| (In USD)                          |     | Three months ended 
 December 31,       
 2024               |            |   |     | 2023 |            |   |     | Nine months ended 
 December 31,      
 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
%, %, % and % 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