In exercise of the powers under Section 145(2) of the Income Tax 1961, ICDS was issued by CBDT.
Click Below for the entire ICDS Notes in pdf
- ICDS is applicable from A.Y (2016-17)
- Is applicable only for the preparation of income chargeable under the heads “ Profits and gains from business or profession” or “ Income from other sources” and does not lead to preparation of separate books of accounts
- All assesses are to follow ICDS for computation of income irrespective of any turnover or income thresholds.
- In case of conflict between ICDS and the express provision of the Income Tax Act, the Act will prevail.
|Standards notified by CBDT||Corresponding AS by ICAI|
|1||ICDS I – Accounting Policies||AS 1|
|2||ICDS II – Valuation of Inventories||AS 2|
|3||ICDS III – Construction Contracts||AS 7|
|4||ICDS IV – Revenue Recognition||AS 9|
|5||ICDS V – Tangible Fixed Assets||AS 10|
|6||ICDS VI – Effects of Changes in Foreign Exchange Rates||AS 11|
|7||ICDS VII – Government Grants||AS 12|
|8||ICDS VIII – Securities||AS 13|
|9||ICDS IX – Borrowing Cost||AS 16|
|10||ICDS X – Provisions, Contingent Liabilities and Contingent Assets||AS 29|