Manual - ICDS III : Construction Contracts

As per ICDS III incidental incomes do not form part of contract revenue and shall be reduced from the contract costs. An example of incidental income is sale of surplus materials and the disposal of plant and equipment at the end of the contract. Incidental income for this purpose does not include incomes in the nature of interest, dividends and capital gains. These incomes would be taxed separately in accordance with the applicable provisions of the Act.