Fin Min defers implementation of ICDS by an year to 2017-18 assessment year

New Delhi, July 7 (KNN) The Expert Committee, set up to examine the Income Computation and Disclosure Standards (ICDS) notified by the Centre on 31st March, 2015, has recommended to defer by one year the implementation of ICDS commonly referred to as tax standards.

The ICDS-which had earlier come into effect from April 1, 2015 - will now be applicable from April 1, 2016, an official release said on Wednesday.

Hence, financial year 2016-17 would be the first year of ICDS implementation.

These ICDS are applicable from 1.4.2015 i.e. previous year 2015-16 (Assessment Year 2016-17). Subsequent to notification of the ICDS, a number of representations were received which were examined by an Expert Committee, said an official statement.

The Committee has recommended amendments to the notified ICDS and also issuance of clarification in respect of certain points raised by the stakeholders.

The revision of ICDS/issue of clarifications 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, the statement added.

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. Considering these facts, it has been decided that the ICDS shall be applicable from 1.4.2016 i.e. previous year 2016-17 (Assessment Year 2017-18). The notification to this effect will be issued shortly.