Analysis of Introduction to ICDS

Question

Answer

  1.        What is the full form of ICDS

Income Computation and Disclosure Standards

  1.        Does ICDS apply for accounting?

No, it will apply only for income computation.

  1.        I sold ancestral land. Will ICDS apply in such case for computation of income?

No, ICDS applies only for PGBP and IOS/IFOS

  1.        I am a doctor. Will ICDS apply to me?

If I follow cash basis, then it won’t apply.

 If i follow mercantile system but not liable to tax audit, then still ICDS won’t apply

  1.        ICDS says expense is not allowed. Income Tax Act says it is allowed. What will apply?

Provisions of Act will apply

  1.        ICDS says expense is not allowed. Income Tax Rules says it is allowed. What will apply

Provisions of Rules will overide ICDS

  1.        Supreme Court said income is not taxable. ICDS says it is taxable. What will apply?

If there is conflict between provisions of ICDS and High / Supreme Court Case Law, then provisions of the ICDS shall prevail.