Section 145 (1) of the Income-tax Act, 1961 (‘the Act’) provides that the income chargeable under the head “Profits and gain of business or profession” or “Income from other sources” shall be computed in accordance with either cash or mercantile system of accounting regularly employed by the assessee; subject to the provisions of Section 145(2).
Section 145(2) provides power to Central Government to Notify Income Computation and Disclosure Standards (ICDS) for any class of assessees or for any class of income.
In this relation, draft ICDS has been uploaded on the Finance Ministry website (www.finmin.nic.in) and Income-tax Department website (www.incometaxindia.gov.in) for comments from stakeholders and general public. The comments and suggestions on the draft ICDS may be submitted by 8th February, 2015 at the email address (firstname.lastname@example.org or email@example.com) or by post at the following address with “Comments on draft ICDS” written on the envelope:
Director(Tax Policy & Legislation)-III
Central Board of Direct Taxes,
Draft ICDS for comments can be downloaded by clicking below