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<h1>Incidental Income from Construction Contracts Excluded from Revenue Under ICDS III; Deduct from Costs Instead.</h1> Incidental income arising from construction contracts, as per ICDS III, is not included in contract revenue and should be deducted from contract costs. Examples include income from the sale of surplus materials and disposal of plant and equipment after contract completion. However, incidental income does not cover interest, dividends, and capital gains, which are taxed separately under relevant legal provisions.