In our LIVE webcast this month our specialists highlighted the key changes and implementation challenges for companies that adopt ICDS from this year and also provided an overview of the financial reporting and regulatory developments introduced under the Indian GAAP during the year ended 31 March 2015.
On 31 March 2015, the Ministry of Finance has issued ten ICDS, operationalising a new framework for computation of taxable income by all assesses. All assesses would be required to adopt these standards for the purposes of computation of taxable income under the heads “Profit and gains of business or profession” and “Income from Other Sources”. These standards are applicable for previous year commencing from 1 April 2015, i.e., Assessment Year 2016-17 onwards.
The adoption of ICDS will significantly alter the way companies compute their taxable income, as many of the concepts from existing Indian GAAP have been modified. This may also require changes to existing processes and systems.
During the year ended 2015, the Ministry of Corporate Affairs (MCA) has issued various amendments and clarifications to the Companies Act, 2013 (the Act) and the corresponding Rules to remove practical impediments faced by companies while implementing certain provisions of the Act.
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