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

NEW DELHI: The government has deferred the implementation of Income Computation and Disclosure Standards (ICDS) by an year to 2017-18 assessment year, bowing to industry demand to give it more time for preparation. The ICDS were applicable from April 1, 2015 that is assessment year 2016-17.

The government had set up an expert committee to look into industry representations on the ICDS, which has recommended amendments to the notified framework and also issuance of clarification in respect of certain points raised by the stakeholders.

These recommendations are being considered by the government, a finance ministry statement said on Wednesday.

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.

"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 April 1, 2016 i.e. Assessment Year 2017-18," it said.

The notification to this effect will be issued shortly, the statement said.