India Introduces Income Computation and Disclosure Standards for Business Profits; Rescinded in 2016.

The Government of India, through the Ministry of Finance and the Central Board of Direct Taxes, issued Notification No. 32/2015 on March 31, 2015, under section 145(2) of the Income-tax Act, 1961. This notification introduced Income Computation and Disclosure Standards (ICDS) to be adhered to by assessees using the mercantile system of accounting for computing income under 'Profit and gains of business or profession' or 'Income from other sources.' Effective from April 1, 2015, for the assessment year 2016-17 onwards, the standards cover various areas including accounting policies, inventory valuation, construction contracts, revenue recognition, and more. This notification was later rescinded by Notification No. 86/2016 on September 29, 2016.