{"id":3893,"date":"2017-04-05T14:37:23","date_gmt":"2017-04-05T09:07:23","guid":{"rendered":"http:\/\/www.itatonline.org\/articles_new\/?p=3893"},"modified":"2017-04-05T14:37:50","modified_gmt":"2017-04-05T09:07:50","slug":"income-computation-and-disclosure-standards-icds-an-update","status":"publish","type":"post","link":"https:\/\/itatonline.org\/articles_new\/income-computation-and-disclosure-standards-icds-an-update\/","title":{"rendered":"Income Computation And Disclosure Standards (ICDS) – An Update"},"content":{"rendered":"

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There have been a spate of amendments to the various Income Computation and Disclosure Standards (ICDS) prescribed by the Central Government under section 145 (2) of the Income-tax Act, 1961. CA Dhaval Desai has systematically analyzed all the ICDS issued up to date and explained their implications in a concise manner <\/strong><\/p>\n

Section (S.) 145 of the Income Tax Act, 1961 (ITA) provides that taxable income of an assessee falling under the heads “Profits and gains of business or profession” or “Income from other sources”, shall be computed in accordance with either cash or mercantile system of accounting which is regularly employed by the assessee. It further provides that the Central Government (CG) may notify, from time to time, Income Computation & Disclosure Standards (ICDS) to be followed by any class of taxpayers or in respect of any class of income. <\/p>\n

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Based on the recommendations of the ICDS Committee and public representations on the draft ICDS, the CG had notified 10 ICDS (‘ICDS 2015’) vide notification dated 31 March 2015 for compliance by all assessees following mercantile system of accounting for computing ‘business’ and ‘other sources’ income w.e.f. 1 April 2015. <\/p>\n