ICDS Intro


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

Income Computation and Disclosure Standard


  1. ICDS is applicable from A.Y (2016-17)
  2. 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
  3. All assesses are to follow ICDS for computation of income irrespective of any turnover or income thresholds.
  4. In case of conflict between ICDS and the express provision of the Income Tax Act, the Act will prevail.

ICDS issued

  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


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