<h1>CBDT Issues ICDS IX u/s 145(2) for Borrowing Costs in Mercantile Accounting, Effective April 2015.</h1> The Central Board of Direct Taxes (CBDT) issued the Income Computation Disclosure Standards (ICDS) under section 145(2) of the Income Tax Act, 1961, effective from April 1, 2015, for the assessment year 2016-17. ICDS IX addresses the treatment of borrowing costs for entities using the mercantile accounting system. It excludes costs related to owner's equity and preference share capital. Borrowing costs, including interest and ancillary charges, are capitalized if directly attributable to qualifying assets. General borrowing costs are capitalized using a specific formula. The standard also outlines the commencement and disclosure requirements for capitalizing borrowing costs.