Applicability:
- 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
Books Maintenance:
- 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.
Objective:
- 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 |
| Accounting Policies | I | 1 |
| Valuation of Inventories | II | 2 |
| Construction Contract | III | 7 |
| Revenue Recognition | IV | 9 |
| Tangible Fixed Asset | V | 10 |
| Effects of changes in foreign exchange rates | VI | 11 |
| Government Grants | VII | 12 |
| Securities | VIII | 30 |
| Borrowing Costs | IX | 16 |
| 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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