Icds

The main idea behind Income Computation and Disclosure Standards - ICDS is to facilitate consistency in the computation and disclosure of taxable income. It would pave way in reducing litigation and  minimize the alternatives provided by the existing Accounting Standards issued by the Institute of Chartered Accountants of India.

This will affect the compliance practice of all taxpayers following the mercantile system of accounting for computing income chargeable to income tax under the heads:

• Profits and gains of business or profession or
• Income from other sources

The Central Government (CG) has notified 10 Income Tax Computation & Disclosure Standards (ICDS) effective financial year 2015–16.

Therefore, you may have to update your knowledge on these standards while preparing for the examination. ICDS is the new avatar of Tax Accountng Standards (TAS) which the income tax department wanted to come out with.

Yes, there can be questions on ICDS, why not.

Even after following Accrual based Accounting for all.
Can I show One or two Expenses or Income on Cash basis like for Bonus, Gratiuty or Govt Incentives as earlier after introduction of Income Computation and Disclosure Standards

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