Business Mantra News
- Section 145 of Income Tax Act provides that taxable income of assesse who is following mercantile system of accounting shall be computed by ICDS.
- ICDS applicable for computing income under the head Profits and Gain from Business and Profession and other income.
- Both Corporate and Non-Corporate Assesses are covered under ICDS.
- There is no need to maintain separate books of account to follow ICDS.
- ICDS to be followed by all assesses whether residents and non residents.
- The Central Government on 31 March, 2015 has notified 10 ICDS to be complied by assesses.
Following are the ICDS which has been notified by the Central Govt. till date:
- Disclosure of Accounting Policies – ICDS I
- Valuation of Inventories –ICDS II
- Construction Contract-ICDS III
- Revenue Recognition-ICDS IV
- Tangible Fixed Assets-ICDS V
- Effect of change in Foreign Exchange Rates-ICDS VI
- Government Grants-ICDS VII
- Tangible Fixed Assets-ICDS VIII
- Borrowing Cost-ICDS
- Provisions, Contingent Liabilities and Contingent Assets.
The Income Tax Department shall get information of the Assessee to the fullest but for an Assesse the implementation is not so easy