Himanshu
Revised Income Computation and Disclosure Standards
Himanshu Kumar 15 Oct 2016

Revised Income Computation and Disclosure Standards

Section 145 of the Income tax Act, 1961 (“the Act”), as amended by the Finance Act, 1995, empowered the Central Government to notify the Accounting Standards to be followed for computing income under the head “Profits and Gains of Business or Profession” and “Income from Other Sources”. In pursuance thereof, in 1996, two Accounting Standards relating to “Disclosure of Accounting Policies” and “Disclosure of prior period and extraordinary items and Change in accounting policies” were notified.

Several committees were formed by the Central Government for drafting and notifying Accounting Standards for the purpose of the aforesaid section. Finally, the Central Board of Direct Taxes (“CBDT”) vide Notification No. 33/2015 on March 31st2015, i.e., after almost two decades, notified 10 Income Computation & Disclosure Standards (“ICDS”), to be effective from Assessment Year 2016-17 onwards.

Subsequent to notification of the ICDS, a number of representations were received from the stakeholders which were examined by an Expert Committee. Since the Committee recommended amendments to the notified ICDS and revision of ICDS/ issue of clarifications as recommended by the Committee was under consideration, the Government decided to defer the applicability of ICDS and made the same applicable, w.e.f., April 1st 2016, i.e., from previous year 2016-17 (Assessment Year 2017-18).

The Central Government has vide Notification dated 29 September 2016 released new set of ICDS. The revised ICDS are applicable from assessment year 2017 -18 and would have bearing on the taxable income of the current financial year and subsequent financial years.

The revised ICDS are applicable to all taxpayers following mercantile system of accounting, except individual and Hindu Undivided Family not required to get his accounts of the previous year audited in accordance with the provisions of section 44AB of the Act.

Did you find this write up useful? YES 2 NO 1
Send
Featured Members view all

New Members view all

×

C2RMTo Know More

Something Awesome Is In The Work

0

DAYS

0

HOURS

0

MINUTES

0

SECONDS

Sign-up and we will notify you of our launch.
We’ll also give some discount for your effort :)

* We won’t use your email for spam, just to notify you of our launch.