ICAI Technical Guide on ICDS. Income Computation and Disclosure Standards are applicable from AY 2017-18

ICAI Technical Guide on ICDS. Income Computation and Disclosure Standards are applicable from AY 2017-18

Direct Taxes Committee The Institute of Chartered Accountants of India (ICAI) has issued a Technical Guide on Income Computation and Disclosure Standards (ICDS).

CBDT vide Notification No. 87/2016 dated 29.09.2016 has notified ten Income Computation and Disclosure Standards (ICDSs) for all assessees (other than individual or a HUF who is not required to get his accounts of the previous year audited under the provisions of Section 44AB of the Income-tax Act, 1961. It is applicable to those following the mercantile system of accounting and for the purpose of computation of income under the heads “Profits and gains of business or profession” or “Income from other sources” only.

The ICDS have been made applicable w.e.f. April 1, 2016 and applies begining with the assessment year 2017-18.

The CBDT had also sought suggestions from ICAI with respect to Income Computation and Disclosure standards (ICDSs). Now, the ICAI has come out with this Technical Guide.

The Guide inter alia provides for Scopre, Transitional provisions and Sisclosure requirements for all the ten ICDS as under:

1. ICDS I : Accounting Policies
2. ICDS II : Valuation of Inventories
3. ICDS II : Construction Contracts
4. ICDS IV : Revenue Recognition
5. ICDS V : Tangible Fixed Assets
6. ICDS VI : Effects of Changes in Foreign Exchange Rates
7. ICDS VII : Government Grants
8. ICDS VIII : Securities
9. ICDS IX : Borrowing Costs
10. ICDS X : Provisions, Contingent Liabilities & Contingent Assets 

Download ICAI Technical Guide on Income Computation and Disclosure Standards (ICDS) Click Here >>