CBDT’s Revised Income Computation & Disclosure Standards (ICDS) applicable from the AY 2017-18 along with Clarifications by way of 25 FAQs thereon
CBDT has notified revised ICDS (I to X) applicable from FY/ PY 2016-17 (AY 2017-18) excluding the cases of Individuals and HUF not subject to Tax audit. Also, Form 3CD for reporting of ICDS adjustments has been modified. For guidance of stakeholders ICAI has issued a Technical Guide on ICDS and CBDT has answered 25 FAQs for clarifications on certain provisions of Revised ICDS.
A. ICAI’s Technical Guide on ICDS (First Edition July 2017)
ICAI has published a “Technical Guide on Income Computation and Disclosure Standards (ICDS) – First Edition July, 2017”, as under:
B. CBDT Clarifications (25 FAQs) on Revised ICDS (I to X)
CBDT has issued Clarifications by way of 25 Nos. FAQs on it’s ‘Revised Income Computation and Disclosure Standards (ICDS 1~10)’ notified earlier u/s 145(2) of the Income-tax Act, 1961, based on reference received from stakeholders in respect of certain provisions of ICDS, vide Circular No. 10/2017 dt. 23 Mar. 2017, as under:
C. Revised ICDS (I to X) notified by CBDT (dt. 29 Sept. 2016)
S.O. 3079 (E)- In exercise of the powers conferred by sub-section (2) of section 145 of the Income-tax Act, 1961 (43 of 1961, the Central Government hereby notifies the income computation and disclosure standards as specified in the Annexure to this notification to be followed by all assessees (other than an individual or a Hindu undivided family who is not required to get his accounts of the previous year audited in accordance with the provisions of section 44AB of the said Act) following the mercantile system of accounting, 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”.
This notification shall apply to the assessment year 2017-18 and subsequent assessment years. (…contd…)
D. Form 3CD modified for ICDS Reporting Adjustments thru Income-tax (23rd Amendment) Rules, 2016 (dt. 29 Sept. 2016)
S.O. 3080(E).— In exercise of the powers conferred by section 44AB, read with section 295 of the Income-tax Act, 1961 (43 of 1961), the Central Board of Direct Taxes hereby makes the following rules further to amend the Income-tax Rules, 1962, namely:-
1. (1) These rule may be called the Income-tax ( 23rd Amendment) Rules, 2016. (2) They shall come into force with effect from 1st April, 2017.
2. In the Income-tax Rules, 1962, in Appendix II , in Form No. 3CD, in Part-B, in clause 13, for sub-clause (d), the following shall be substituted ,namely, — (…contd…)