Income Computation & Disclosure Standards (ICDS) - A Brief Introduction

Earlier in 1996 Central Government (CG) had notified only two accounting standards i.e. Disclosure of Accounting Policies & Disclosure of Prior Period Items and Extraordinary Items and Changes in Accounting Policies. Section-145 (2) of Income tax Act, 1961 empowers CG to issue Accounting Standards for computation of Income. During December 2010 Central Government constituted a committee to draft Income Computation and Disclosure Standard (ICDS). In August 2012 the committee provides draft of 14 tax accounting standards which were issued for public comments and after revision now CG notified 10 ICDS which are to be effective from F.Y. 2016-17. ICDS notified by CBDT wide Notification No: 32/2015 dated 31-03-2015.

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