TMI Short Notes

Introduction - Income computation and disclosure standards (ICDS)

1. Bad debts out of income recognised on the basis of ICDS but not yet recognised in books of account

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2. Applicability of ICDS for the purpose of disallowance u/s 40(a)(i) and 40(a)(ia)

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3. Applicability of ICDS on TDS

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4. Maintenance of Books of accounts for the purpose of ICDS

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5. ICDS-I requires disclosure of significant accounting policies and other ICDS requires specific disclosures. Where is the taxpayer required to make such disclosures specified in ICDS.

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6. In case any of the ICDS provisions is contrary to a circular or press release issued by the CBDT, which would prevail over the other.

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7. Whether the provisions of ICDS apply to a non-resident who claims the benefit of a double taxation avoidance agreement (DTAA).

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8. Where a term has not been defined under ICDS, nor under the Act, but has different interpretations given to it by the courts in tax cases, and in ICAI Accounting Standards, which interpretation would prevail while interpreting ICDS.

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9. Does ICDS apply to computation of Minimum Alternate Tax (MAT) u/s 115JB of the Act or Alternate Minimum Tax (AMT) u/s 115JC of the Act.

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10. In case of conflict between ICDS and other specific provisions of the Income-tax rules, 1962 governing taxation of income like rules 9A, 9B etc. of the Rules, which provisions shall prevail.

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11. Certain ICDS provisions are inconsistent with judicial precedents. Whether these judicial precedents would prevail over ICDS.

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12. Does ICDS apply for the purposes of computing exemption u/s 11 to 13.

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13. Does ICDS apply to the applicability aspect of the TDS.

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14. How will ICDS apply to companies which adopted Ind-AS. (Indian accounting standards)

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15. Whether ICDS is applicable to Non-Residents whose income is liable to be taxed at a flat rate of tax like interest, royalty and fees for technical services u/s 115A.

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16. Whether the provisions of ICDS shall apply to Banks, Non-banking financial institutions, Insurance companies, Power sector, etc.

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17. Can ICDS would apply to other categories of taxpayers whose income is taxed under presumptive tax schemes (i.e. u/s 44AD, 44ADA, 44AE, 4BB, 44BBA, 44BBB) as there is no specific exclusion provided.

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18. Can a assessee opt to change his method of accounting from mercantile to cash basis.

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19. Can a assessee can follow different methods of accounting for different sources of income under the same head of income, or different heads of income.

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20. Can ICDS apply to a person following cash system of accounting and to the person whose books of account for the year are not required to be audited u/s 44AB.

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