TMI BlogIntroduction - Income computation and disclosure standards (ICDS)X X X X Extracts X X X X X X X X Extracts X X X X ..... ividual or an HUF not required to get his/its accounts for the previous year audited u/s 44AB ) following mercantile system of accounting, and are to be followed for the purposes of computation of income chargeable to income tax under the head Profits and gains of business or profession or Income from other sources . These ICDSs will be a new paradigm for computing taxable income of the ass ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ICDS - 07 : VII Government grants (w.e.f. AY 2017-18) ICDS - 08 : VIII - Securities (w.e.f. AY 2017-18) ICDS - 09 : IX - Borrowing costs (w.e.f. AY 2017-18) ICDS - 10 : X - Provisions, contingent liabilities and contingent assets (w.e.f. AY 2017-18) Notes:- Net effect on the income due to a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hich do not fall under presumptive tax schemes or DTAA, the provisions of ICDS would apply. Where an individual or HUF falls under and opts to be covered by presumptive tax schemes, they would not be liable tax audit under section 44AB , and would fall under the exclusion clause of ICDS. Hence ICDS would not apply. However, if a tax payer opts out of a presumptive taxation, he is required ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ntinue to be governed by the date of credit in the books of account, or date of payment. The amount of expenditure on which tax has to be deducted will be determined by the entry in the books of account, and not by the computation or quantum of x`allowable expenditure under ICDS. If there is a conflict between the provisions of the Income-tax Act and the ICDS, the provisions of the Act wou ..... X X X X Extracts X X X X X X X X Extracts X X X X
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