NOTE 18 - INCOME TAXES

12 Months Ended

Mar. 31, 2014

NOTE 18 – INCOME TAXES

Income tax expense (benefit) for each of the years ended March 31 consists of the following:

	March 31,
	2014			2013
Current:
Federal	$	-		$	-
Foreign		(19,779	)		157,382
State		-			-
Net Current		(19,779	)		157,382

Deferred:
Federal		-			-
Foreign		19,779			(522,498	)
State		-			-
Net Deferred		19,779			(522,498	)
Total tax provision	$	-		$	(365,116	)

The significant components of deferred income tax expense (benefit) from operations before non-controlling interest for each of the years ended March 31 consist of the following:

	March 31,
	2014		2013
Deferred tax expense (benefit)	$	19,779	$	(522,498	)
Net operating loss carry forward		1,086,067		891,816
Foreign Tax Credits		-		-
Less: Valuation Allowance		1,086,067		891,816
Net deferred tax expense	$	19,779	$	(522,498	)

The table below sets forth income tax expense (benefit) for 2014and 2013 computed by applying the applicable United States federal income tax rate and is reconciled to the tax expense (benefit) computed at the effective income tax rate:

	March 31,
	2014			2013
Computed expected income tax (benefit)		(1,035,263	)		(768,709	)
State tax benefit net of federal tax
Change in valuation allowance		936,146			768,709
Deferred expenses from foreign acquisition
Impairment loss on goodwill
Impairment loss on investments
Capitalized interest costs		99,117
Deferred Tax Assets from foreign subsidiaries		-			(365,116	)
Other

Effective income tax rate		(0.	0)%		(15.2	)%

The deferred tax assets and liabilities as of March 31 consist of the following tax effects relating to temporary differences and carry forwards:

	March 31,
	2014			2013
Current deferred tax liabilities (assets):
Deferred Acquisition Costs – Foreign taxes	$	0		$	221,700
Valuation allowance		0			0
Net current deferred tax liabilities (assets)		0			221,700

Noncurrent deferred tax (assets) liabilities:
Deferred Acquisition Costs- Foreign taxes		(321,676	)		(563,155	)
Net Operating Losses		1,086,067			891,816
Valuation allowance		(1,086,067	)		(891,816	)
Non-Current net deferred tax (assets) liabilities	$	(321,676	)	$	(563,155	)

Deferred income tax assets, net of valuation allowances are expected to be realized through future taxable income. The valuation allowance increased in 2013 by $1.09 million, primarily related to 2013 US net-operating losses. The company intends to maintain valuation allowances for deferred tax assets until there is sufficient evidence to support the reversal of the valuation allowance. Deferred tax assets relating to foreign acquisitions costs are expected to be utilized. Therefore, those deferred tax assets remain as part of deferred tax assets.

The Company's and/or its subsidiaries’ ability to utilize their net operating loss carry forwards may be significantly limited by Section 382 of the Internal Revenue Code of 1986, as amended, if the Company or any of its subsidiaries undergoes an “ownership change” as a result of changes in the ownership of the Company's or its subsidiaries’ outstanding stock pursuant to the exercise of the warrants or otherwise. A corporation generally undergoes an “ownership change” when the ownership of its stock, by value, changes by more than 50 percentage points over any three-year testing period. In the event of an ownership change, Section 382 imposes an annual limitation on the amount of post-ownership change taxable income a corporation may offset with pre-ownership change net operating loss carry forwards and certain recognized built-in losses. As of March 31, 2014 IGC could not use its’ net operating losses because it is more likely it will not utilize net operating losses in the foreseeable future.

- Definition

The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.

+ References+ Details