Revised Draft issued by CBDT on Income Computation and Disclosure Standards.

Today, CBDT has issued a Press Release on Revised Draft of Income Computation and Disclosure Standards (Icds) for the purpose of notification under section 145 (2) of Income Tax Act, 1961 with seeks public comments.  The first draft of Tax Accounting Standards issued in August, 2012 by Income Tax Department.  The revised draft contains changes as sub-section (1) of section 145 of the Income Tax Act, 1961 (‘the Act’) provides that the income chargeable under the head “Profits and gain of business or profession” or “Income from other sources” shall [subject to the provisions of sub-section (2)] be computed in accordance with either cash or mercantile system of accounting regularly employed by the assessee. Sub-section (2) of section 145 provides that the Central Government may notify Income Computation and Disclosure Standards(ICDS) for any class of asssessees or for any class of income.  The Revised Press Release is as under :

Government of India
Ministry of Finance
Department of Revenue
Central Board of Direct Taxes

PRESS RELEASE

9th January, 2015

Subject: Draft of Income Computation and Disclosure Standards (ICDS) for the purpose of notification under section 145(2) of the Income-tax Act, 1961.

Sub- section (1) of section 145 of the Income-tax Act, 1961 (‘the Act’) provides that the income chargeable under the head “Profits and gain of business or profession” or “Income from other sources” shall [subject to the provisions of sub-section (2)] be computed in accordance with either cash or mercantile system of accounting regularly employed by the assessee. Sub-section (2) of section 145 provides that the Central Government may notify Income Computation and Disclosure Standards(ICDS) for any class of asssessees or for any class of income.

2.  The Central Board of Direct Taxes(‘CBDT’) had constituted a Committee comprising departmental officers and professionals in December,2010 to inter alia suggest standards for the purposes of notification under section 145(2) of the Act. The Committee submitted its first interim report in August 2011. The Committee submitted its final report along with the draft of standards in August, 2012 which was placed in public domain for comments.

3.  On the basis of the suggestions received from the stakeholders and examination of the same by the CBDT, the draft standards submitted by the Committee have been revised.

4.  The new draft of 12 Income Computation and Disclosure Standards(ICDS) has been uploaded on the Finance Ministry website (www.finmin.nic.in) and Income-tax Department website(www.incometaxindia.gov.in) for comments from stakeholders and general public. The comments and suggestions on the draft ICDS may be submitted by 8th February, 2015 at the email address (dirtpl3@nic.in or rkbhoot@gmail.com) or by post at the following address with “Comments on draft ICDS” written on the envelope:

Director( Tax Policy & Legislation)-III
Central Board of Direct Taxes,
Room No.147-G,
North Block,
New Delhi-110001

(Rekha Shukla)
Commissioner of Income Tax
(Media & Technical Policy)
Official Spokesperson, CBDT

Download REVISED DRAFT OF INCOME COMPUTATION AND DISCLOSURE STANDARDS (CLICK HERE)