Introduction - Income computation and disclosure standards (ICDS)

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.... 1, 2017 (Assessment Year 2017-18) and are to be applied for computing income chargeable under the heads "Profits and gains of business or profession" and "Income from other sources." These ICDSs will be a new paradigm for computing taxable income of the assessee. Taxable profits would now be determined after making appropriate adjustments to the financial statements to bring them in conformity....

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.... applicability:- ICDS would apply only with effect from assessment year 2017-18 and onwards. ICDS - 01 : I - Accounting policies ICDS - 02 : II - Valuation of inventories ICDS - 03 : III - Construction contracts ICDS - 04 : IV - Revenue recognition ICDS - 05 : V - Tangible fixed assets ICDS - 06 : VI - Effects of c....

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....ch ICDS is required to be disclosed. • The provisions of ICDS apply to all taxpayers, irrespective of the residential status. However, where a non-resident taxpayer falls under a presumptive tax scheme, the provisions of ICDS should not apply. Thus it can be said that any cases of incomes of non-residents, which do not fall under presumptive tax schemes or DTAA, the provisions of ICDS....

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....ly to the computation of income under the head PGBP and Income from Other Source. Therefore, for various purposes other than computation of income under these two heads of income, under the Act as well, the provisions of ICDS would not apply. For example, ICDS would not apply for determining the time of credit of income for deduction of tax at source. This would continue to be governed by the d....