CBDT postpones new accounting standard

NEW DELHI: Giving more time for compliance, the income-tax department has postponed the implementation of ICDS, the new accounting standards for computation of business

NEW DELHI: Giving more time for compliance, the income-tax department has postponed the implementation of ICDS, the new accounting standards for computation of business income, by a year.

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Now, the income computation and disclosure standards (ICDS) will be applicable on the income earned in the current fiscal. ICDS was notified by the government on April 1, 2015.

It aims to ensure consistency and help minimise tax-related disputes.

Revenue secretary Hasmukh Adhia in a tweet also said that ICDS would be implemented from assessment year 2017-18 in view of some of difficulties expressed.

“We hope that audit reports will now be ready by CAs (chartered accountants) in time this year,” Adhia said.

Subsequent to ICDS notification on April 1, 2015, the Central Board of Direct Taxes (CBDT) received representations saying that certain provisions of ICDS may need further clarification for proper implementation.

“The committee has recommended amendments to the notified ICDS and also issuance of clarification in respect of certain points raised by the stakeholders,” the statement said.