Maintenance of Books of accounts for the purpose of ICDS

Manual - Introduction - Income computation and disclosure standards (ICDS)

There may be cases where there is substantial difference in figures as per Accounting Standards (Ind-AS) and as per ICDS. ICDS may also impact the income of subsequent years.

Further, as per the amended 3CD form, an auditor has to certify that the computation of total income is made in accordance with the provisions of ICDS.

As per the technical guide on ICDS issued by the ICAI, it is suggested that,

- it may  be advisable to prepare a parallel profit and loss account and balance sheet on the basis of ICDS, to ensure that ICDS and their consequences have been properly taken care of while making the adjustments. 

- a tax payer may consider preparing a reconciliation with profit and loss account and balance sheet to ensure that all adjustments required on account of ICDS have been considered.

Dated: 4-10-2017