Vol 7 , Issue 1 , January - June 2020 | Pages: 94-107 | Commentary
Published Online: May 30, 2020
Author Details
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One of the major challenges while computing tax liability is determination of income. Dilemma arises when identifying which item has to be treated as chargeable and which is not. Income computation and disclosure standards are more efficient than any other standards which help to ascertain accurate income for the computation of tax amount and it reduces deviations between taxable income and accounting income. The organization doesn’t require to maintain any additional books of accounts while computing taxable income by using ICDS but the major condition is, the income must be generated from the ‘Profits and gains of business and professions (PGBP)’ and ‘Income from other sources (IFOS)’. The present study is focusing upon the impact of ICDS on key areas of business transactions and it tries to give a clear picture about ICDS. It’s a descriptive study purely based on secondary data.
Keywords
Income computation and disclosure standards (ICDS); Ind-AS; Business income; Income determination; Tax reforms.
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