The Central Government had notified 10 Income Computation and Disclosure Standards (‘ICDS”) to be applicable to all assessees following mercantile system of accounting for computing business income and income from other sources from AY 2016-17 and onwards. Subsequent to notification of the ICDS, owing to various implementation issues, the Ministry of Finance deferred the applicability of ICDS by one year to FY 2016-17 (Press Release dated 6 July 2016) for considering the recommendations of Expert Committee and making suitable changes to tax audit forms
The CBDT, through its Notification no. 86/2016 rescinded the ICDS issued vide notification no. 32 /2015 on 29 September 2016. It further issued revised ICDS (after making certain significant changes) vide Notification no. 87/2016 and also made suitable changes to tax audit forms vide Notification no. 88/2016.
Our newsflash covers in detail all the revisions made in the ICDS for your easy reference.