<h1>ICDS V: Guidelines on Capitalizing and Depreciating Tangible Fixed Assets for Mercantile Accounting from April 2015.</h1> The Income Computation Disclosure Standards (ICDS) V, issued by the Central Board of Direct Taxes (CBDT), outlines the treatment of tangible fixed assets for tax purposes. Applicable from April 1, 2015, it mandates that all assessees using the mercantile accounting system adhere to these guidelines. Key points include the capitalization of standby and specific machinery spares, inclusion of purchase price and direct expenses in asset cost, and exclusion of general overheads unless asset-specific. Improvements enhancing future benefits are added to the asset's cost. Depreciation and valuation must align with the Income Tax Act, with detailed disclosures required for asset transactions.