Effect of icds 2 on tax liability

Tax queries 501 views 10 replies

Asma

Article

61 Points Joined September 2016

Hello!!

I have a query based on ICDS 2, I am clear about provisions but my basic doubt is about whether the Effect of ICDS (i,e. Increase in the value of stock) will be added to the Business profit in calculating the Tax Liability??? OR such increase in stock is only for Disclosure purpose.

For Example:(Partnership Concern)

If my stock value increased by 1 lakh as effect of ICDS. & My current profit is 3 lakhs. For computation of Income Tax whether i need to add 1 lakh to my profits for calculation of Tax Liability. OR I pay tax on 3 lakhs and show 1 lakh as disclosure.

Replies (10)

bhavik

accountant

31 Points Joined August 2015

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bhavik

accountant

31 Points Joined August 2015

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bhavik

accountant

31 Points Joined August 2015

bhavik

accountant

31 Points Joined August 2015

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bhavik

accountant

31 Points Joined August 2015

b. v

Asma

Article

61 Points Joined September 2016

Did you really replied to my Question. I didnt understood anything????????????

kamlesh kumar

student

24 Points Joined February 2016

No one understand anything .....what is it...lol

kamlesh kumar

student

24 Points Joined February 2016

No one understand anything .....what is it...lol

Mahesh Babu

CA Final

618 Points Joined August 2012

Originally posted by : Asma
	Hello!! I have a query based on ICDS 2, I am clear about provisions but my basic doubt is about whether the Effect of ICDS (i,e. Increase in the value of stock) will be added to the Business profit in calculating the Tax Liability??? OR such increase in stock is only for Disclosure purpose. For Example:(Partnership Concern) If my stock value increased by 1 lakh as effect of ICDS. & My current profit is 3 lakhs. For computation of Income Tax whether i need to add 1 lakh to my profits for calculation of Tax Liability. OR I pay tax on 3 lakhs and show 1 lakh as disclosure.

Need to add such amount of Rs.1 Lakh while computing the business profit under Income by giving effect of ICDS income.

Asma

Article

61 Points Joined September 2016

Thankyou Mahesh sir,

It means I have to pay Taxes on 4 lakhs (3 lakhs profit + 1 lakh ICDS Income). If it is like that can u please provide any further material or link for my clarification.