New income disclosure norms to be applicable from April 1, 2016

The Income Computation and Disclosure Standards (ICDS) shall be now applicable from April 1, 2016 instead of April 1, 2015, since tax payers might have already filed income tax return without incorporating compliance with the ICDS, the Finance Ministry said here on Wednesday.

"It has been decided that the ICDS shall be applicable from April 1, 2016. The notification to this effect will be issued shortly," a statement from the Finance Ministry said here on Wednesday.

"Some of the tax payers might have filed their return of income and obtained Tax Audit Report without incorporating the compliance with the ICDS and related disclosures in the absence of the revised Tax Audit Report," the statement said.

Subsequent to notification of the ICDS, a number of representations were received which were examined by an Expert Committee. The Committee has recommended amendments to the notified ICDS and also issuance of clarification in respect of certain points raised by the stakeholders, it said.

"The revision of ICDS as recommended by the Committee, is under consideration. The revision of the Tax Audit Report is also being made for ensuring the compliance with the provisions of ICDS and for capturing the disclosures mandated by the ICDS," it added.

--IANS

mm/rn/dg