Income computation and disclosure norms likely by March 15

Taking forward the implementation of new accounting standards, the government expects to notify the Income Computation and Disclosure Standards (ICDS) by March 15.

Last week, the government had notified the rules for Indian Accounting Standards (Ind AS) -- that are converged with global standards IFRS.

The government today said efforts are being made to notify ICDS by mid-March."These standards would be applicable for computation of income for financial year 2015-16 and subsequent years ... Efforts are being made to notify ICDS by March 15, 2015," the government said in a report on implementation of Budget announcements made in July last year.

Last month, the Finance Ministry proposed new tax accounting standards related to income computation and disclosures by businesses.

The new draft of 12 Income Computation and Disclosure Standards (ICDS) was aimed at having consistency in respect of issues that come under this ambit.

This ICDS is applicable for computation of income chargeable under the head 'profits and gains of business or profession' or 'income from other sources' and not for the purpose of maintenance of books of accounts, according to the Ministry.

In the draft paper, the Ministry had suggested tax accounting standards for various matters including those related to lease of equipment, construction-linked projects and inventory valuation.

Meanwhile, Ind AS would be mandatory for companies from April 1, 2016. Banking, insurance and non—banking finance companies have been exempted from the road map for new accounting standards.