CBDT notifies the revised ICDS (I to X) applicable from FY 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:
ICAI’s Technical Guide on Income Computation and Disclosure Standards (ICDS)
B. CBDT Clarifications (25 FAQs) on Revised ICDS (I to X)
CBDT has issued Clarifications by way of 25 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 10/2017 dt. 23/03/2017, as under:
CBDT Income Tax Circular 10/2017 dt. 23/03/2017: Clarifications by way of 25 FAQs on Revised ICDS
C. Revised ICDS (I to X) notified by CBDT (dt. 29/09/2016)
CBDT notifies revised ‘Income Computation and Disclosure Standards (ICDS I to ICDS X)’ to be followed by all assessees following the mercantile system of accounting (except individuals/ HUF not subject to tax audit), 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”, applicable from AY 2017-18 and onwards, as under:
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…)
CBDT Income Tax Notification 87/2016 dt. 29/09/2016: Revised ICDS I to ICDS X notified applicable from AY 2017-18
C2. List of ICDS (I to X) as Revised by CBDT
ICDS I relating to Accounting Policies (corresponding to AS-1)
ICDS II relating to Valuation of Inventories (corresponding to AS-2)
ICDS III relating to Construction Contracts (corresponding to AS-7)
ICDS IV relating to Revenue Recognition (corresponding to AS-9)
ICDS V relating to tangible Fixed Assets (corresponding to AS-10)
ICDS VI relating to the Effects of Changes in Foreign Exchange Rates (corresponding to AS-11)
ICDS VII relating to Government Grants (corresponding to AS-12)
ICDS VIII relating to Securities (corresponding to AS-13)
ICDS IX relating to Borrowing Costs (corresponding to AS-16)
ICDS X relating to Provisions, Contingent Liabilities and Contingent Assets (corresponding to AS-29)
D. Form 3CD modified for ICDS Reporting Adjustments thru Income-tax (23rd Amendment) Rules, 2016 (dt. 29/09/2016)
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 01/04/2017.
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…)
CBDT Income Tax Notification 88/2016 dt. 29/09/2016: Revised ICDS related amendments in Form 3CD
Revised Forms 3CA, 3CB, 3CD: Tax Audit Report
E. CBDT’s Draft ICDS 11 on “Real Estate Transactions”
The CBDT has issued draft “Income Computation and Disclosure Standard XI (ICDS 11) on Real Estate Transactions”. The scope of this ICDS shall be to determine income from all type of real estate transactions, i.e. relating to land as well as buildings and rights in relation thereto, including:
a) Sale of plots of land (including long term sale type leases) without any developments.
b) Sale of plots of land (including long term sale type leases) with development in the form of common facilities.
c) Development and sale of residential and commercial units, row houses, independent houses, with or without an undivided share in land.
d) Acquisition, utilization and transfer of development rights.
e) Redevelopment of existing buildings and structures.
f) Joint development agreements for any of the above activities.
CBDT’s Draft ICDS 11 on Real Estate Transactions dated 11/05/2017
how and when to disclose icds in tax return? what are the aspects that needs special attention in tax return in applicability of icds. Is it mandatory to fill clause 13(f) of tax return ? how to pratically disclose the amount in all those 10 icds and what should be the amount?
Thanks a lot for this detailed information at one place!