- Applicable to all Assesses w.e.f AY 16-17.
- Income Computation and Disclosure Standard (ICDS) is applicable for computation of income chargeable under the head of
- Profits and gains of business or profession
- Income from other sources
- The said standards has been issued for assisting the tax computation under the heads PGBP & other sources.
- These standards are not for the purpose of maintenance of books of accounts.
- However we have to comply the Section 44AA in this regard.
- Standards has been issued to bring more clarity in the computation of Income.
- And also harmonizing with the IND AS notified by the MCA.
List of Standards Applicable:
|NAME||ICDS No||Accounitng Standard No|
|Valuation of Inventories||II||2|
|Tangible Fixed Asset||V||10|
|Effects of changes in foreign exchange rates||VI||11|
|provisions, contingent liabilities and contingent assets||X||29|
Other Important Points
- ICDS is meant for normal computation of income not for MAT Computation.
- In the case of conflict between the provisions of the Income‐tax Act, 1961 and Income Computation and Disclosure Standard, the provisions of the Act shall prevail to that extent
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