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
Manual - ICDS IV : Revenue Recognition
Section 145A(b) of the Act provides that interest received by an assessee on compensation or on enhanced compensation, as the case may be, shall be deemed to be the income of the year in which it is received. Such interest shall be taxed under the head 'Income from other sources' in the year of receipt, irrespective of whether assessee follows mercantile system of accounting or cash system. Thus ICDS-IV will not apply to interest received by an assessee on compensation or on enhanced compensation, since, in case of conflict between ICDS and the Act, the Act shall prevail.
Interest on compensation taxed as Income from Other Sources when received; accounting standard ICDS does not displace the statute. Interest received on compensation or enhanced compensation is taxable in the year of receipt and must be reported under Income from Other Sources, regardless of whether the assessee uses mercantile or cash accounting; where ICDS IV conflicts with the Act the statute prevails.
of Press 'Enter' after typing page number.
TaxTMI 
