| 12. | Income Tax |
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 deferred tax assets (liabilities) at March 31, 2017 and 2016 are as follows:
| March 31, 2017 | March 31, 2016 | |||||||
| Property and equipment | $ | 26,611 | $ | 992 | ||||
| Carried forward loss | 199,720 | 32,688 | ||||||
| Total deferred income taxes | $ | 226,331 | $ | 33,680 | ||||
Income tax expense (benefit) was computed as follows:
| Federal income tax | $ | - | $ | - | ||||
| State income tax | - | - | ||||||
| Foreign jurisdiction income tax | - | - | ||||||
| Total income taxes, current provision | - | - | ||||||
| Deferred income tax expenses/(benefit) | (167,032 | ) | (32,699 | ) | ||||
| Total income taxes expense/(benefit) | $ | (167,032 | ) | $ | (32,699 | ) |
The Company files its income tax returns on a fiscal year basis.
The future effective income tax rate depends on various factors, such as the Company’s income (loss) before taxes, tax legislation and the geographic composition of pre-tax income.
The Company files income tax returns in the U.S. federal jurisdiction, various State jurisdictions. Sunalpha files tax returns India. The Company is generally subject to U.S. Federal, State and local examinations by tax authorities for the past three years.