Central government has notified the income computation and disclosure standards for the assesse who are following the mercantile system of accounting for their income tax computation. In this regard these standards are to be applicable for the assesse having income under the head of PGBP i.e Profit and gain of business or profession or Income from other sources.

This notification is 32/2015 [File no.134/48/2010-TPL]SO892E is published by the department on 31st March 2015. This notification will be applicable with effect from 1st April 2015 so as to be applicable for income computation for the assessment year 2016-2017 for the above mentioned assesses.

Income tax has also published standards for income computation and disclosure requirement for the assesses whose income comes under the heads of “Profit and gains of business or profession” or “Income from other sources”.

Now from students point of view you have to study another standards along with Accounting Standards and Auditing Standards.

In its first publication department has published TEN standards on income computation and disclosure requirements. The name for the same is given below for your kind reference:-

  1. Income  Computation  and  Disclosure  Standard  I  relating  to  Accounting Policies
  2. Income Computation and Disclosure Standard II relating to valuation of  inventories
  3. Income Computation and Disclosure Standard III relating to construction contracts
  4. Income  Computation  and  Disclosure  Standard  IV  relating  to  revenue  recognition
  5. Income  Computation  and  Disclosure  Standard  V  relating  to  tangible  fixed  assets
  6. Income Computation and Disclosure Standard VI relating to the effects of  changes in foreign exchange rates
  7. Income  Computation  and  Disclosure  Standard  VII  relating  to  government  grants
  8. Income Computation and Disclosure Standard VIII relating to securities
  9. Income Computation and Disclosure Standard IX relating to borrowing costs
  10. Income Computation and Disclosure Standard X relating to contingent liabilities, provisions and contingent assets

You can download the all of the above mentioned from the link given below for direct downloading

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