v3.25.2
Deferred Tax Assets and Income Tax Provision
 12 Months Ended
Mar. 31, 2022
Income Tax Disclosure [Abstract]  
Deferred Tax Assets and Income Tax Provision

Note 7 – Deferred Tax Assets and Income Tax Provision

 

Deferred Tax Assets

 

At March 31, 2022, the Company had net operating loss (“NOL”) carry–forwards for Federal income tax purposes of $305,145 that may be offset against future taxable income through 2037. No tax benefit has been reported with respect to these net operating loss carry-forwards because the Company believes that the realization of the Company’s net deferred tax assets of approximately $64,080 was not considered more likely than not and accordingly, the potential tax benefits of the net loss carry-forwards are offset by a full valuation allowance.

 

Deferred tax assets consist primarily of the tax effect of NOL carry-forwards. The Company has provided a full valuation allowance on the deferred tax assets because of the uncertainty regarding the probability of its realization. The valuation allowance increased approximately $2,616  and $5,670  for the year ended March 31, 2022 and 2021, respectively.

 

Components of deferred tax assets in the balance sheets are as follows:

        
  

March 31,

2022

   March 31,
2021		 
Net deferred tax assets – non-current:        
         
Expected income tax benefit from NOL carry-forwards  $64,366   $61,750 
           
Less valuation allowance   (64,366)   (61,750)
           
Deferred tax assets, net of valuation allowance  $-   $- 

 

Income Tax Provision in the Statements of Operations

 

A reconciliation of the federal statutory income tax rate and the effective income tax rate as a percentage of income before income tax provision is as follows:

        
   For the Year
ended March 31,
2022		   For the Year
ended March 31,
2021		 
Federal statutory income tax rate   21.0%   21.0%