TaxTMI Login
Just a moment...
By creating an account you can:
Press 'Enter' to add multiple search terms. Rules for Better Search
of 
Press 'Enter' after typing page number.
of Press 'Enter' after typing page number.
No Folders have been created
Are you sure you want to delete "My most important" ?
NOTE:
of Press 'Enter' after typing page number.
of Press 'Enter' after typing page number.
All TMI Notes
of Press 'Enter' after typing page number.
of Press 'Enter' after typing page number.
All TMI Notes
Join Channel
Note
Bookmark
Share
Don't have an account? Register Here
Where an assessee is following different methods of accounting then, ICDS would apply only to those sources of income, where mercantile system of accounting is followed and would not apply to those sources of income, where cash system of accounting is followed. This system is followed with the sole aim of checking the escapement of income, which occurred due to heterogeneous system of accounting followed by the assessee.
For example, if the assessee is following mercantile system of accounting for his manufacturing business and cash system of accounting for his commission agency business, then ICDS would then apply only to the manufacturing business, and not to the commission agency business.
Accounting method application: ICDS governs sources using the mercantile system but not sources accounted on a cash basis. ICDS applies at the source level: it governs only those sources where the assessee follows the mercantile (accrual) system of accounting and does not apply to sources maintained on the cash system, a distinction intended to prevent escapement of income caused by heterogeneous accounting across an assessee's activities.
of Press 'Enter' after typing page number.
TaxTMI 
