On 31 March 2015, the Ministry of Finance (MOF) issued 10 Income Computation and Disclosure Standards (ICDS). These standards were to be applicable for Previous Year (PY) commencing from 1 April 2015, i.e., Assessment Year (AY) 2016-17 onwards.
Following developments have taken place subsequent to notification of ICDS:
On 29 September 2016, revised ICDS have been issued. The revised ICDS are applicable to all assessees other than an individual or a Hindu undivided family who is not required to get his accounts of the PY audited in accordance with the provisions of Section 44AB of the Income-tax Act, 1961. The ICDS would be applied by assessees in relation to income chargeable under the heads ‘Profit and gains of business or profession” and ‘Income from other sources’.
The MOF has also amended the Tax Audit Report to provide:
This was a special session of our Voices on Reporting call which provided an
overview of the key changes to the ICDS and their likely impact on companies in India.
© 2016 KPMG, an Indian Registered Partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.