Manual - Introduction

ICDS is framed on the basis of accounting standards notified by Ministry of Corporate Affairs (MCA) vide Notification No. GSR 739(E) dated 7 December 2006 under section 211(3C) of erstwhile Companies Act 1956. However, MCA has notified in February 2015 a new set of standards called ’Indian Accounting Standards’ (Ind-AS). How will ICDS apply to companies which adopted Ind-AS? 

The answer

ICDS shall apply for computation of taxable income under the head PGBP or Income from other sources. This is irrespective of the accounting standards adopted by companies i.e. either Accounting Standards or Ind-AS.