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

Manual - Introduction

Circular No. 10/2017 - Dated: 23-3-2017 - Clarifications on Income Computation and Disclosure Standards (ICDS) notified under section 145(2) of the Income-tax Act, 1961

The IRDA Regulations require the accounts to be prepared by application of Accounting Standards prescribed by ICAI. Section 44 read with the First Schedule would prevail over ICDS. Therefore, ICDS would not be applicable to the computation of business income of insurance companies.

Further as clarified by the CBDT as:

The general provisions of ICDS shall apply to all persons unless there are sector specific provisions contained in the ICDS or the Act. For example, ICDS VIII contains specific provisions for banks and certain financial institutions and Schedule I of the Act contains specific provisions for Insurance business.

Dated: 11-8-2017