8. Income Tax Provision

12 Months Ended

Mar. 31, 2019

Deferred tax assets

At March 31, 2019, the Company had net operating loss (“NOL”) carry–forwards for Federal income tax purposes of $3,576,403 that may be offset against future taxable income through 2039. The carry-forwards begin to expire in the year 2027. No tax benefit has been reported with respect to these net operating loss carry-forwards in the accompanying financial statements because the Company believes that the realization of the Company’s net deferred tax assets of approximately $749,998 was not considered more likely than not and accordingly, the potential tax benefits of the net loss carry-forwards are fully 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 its realization. The valuation allowance increased approximately $71,620 and $34,642 for the reporting period ended March 31, 2019 and 2018, respectively.

Components of deferred tax assets are as follows:

Net deferred taxes – Non-current	31-Mar-19		31-Mar-18
Expected income tax benefit from NOL carry-forwards	$	751,045	$	679,425
Less valuation allowance		-751,045		-679,425
Deferred tax assets, net of valuation allowance	$	-	$	-

Income taxes 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 taxes is as follows:

	March 31, 2019			March 31, 2018

Federal statutory income tax rate		21.0	%		21.0	%
Change in valuation allowance on net operating loss
carry-forwards		(21.0	%)		(21.0	)
Effective income tax rate	$	-		$	-

CENTAURUS DIAMOND TECHNOLOGIES, INC. 10-K/A