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<h1>Taxpayers with business or other income must use ICDS for taxable income if using Mercantile accounting.</h1> Every taxpayer earning income under the categories of 'Profit and gains from business or profession' or 'income from other sources' must compute taxable income following the notified Income Computation and Disclosure Standards (ICDS). This requirement applies only if the taxpayer maintains accounts using the 'Mercantile system' of accounting.
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