CA. Tejas K. Andharia


It’s my pleasure to publish this e-book on Income Computation and Disclosure Standards. This e-book is an attempt to summarize the relevant provisions of Income Computation and Disclosure Standards in comparison with provisions of Accounting Standards. Relevant sections of Income Tax Act, 1961 are also discussed at appropriate places.

My lectures in series of meetings on ICDS (jointly organized by Bhavnagar C. A. Association and Bhavnagar Income Tax Bar Association) inspired me to write this e-book.

I hope this e-book will be helpful not only to practicing CAs and Income Tax Practitioners, but also to students of professional courses like CA/CS/C WA.

Readers may just go to the “contents” page and click on link of relevant chapter, it will automatically redirect the reader to concerned page.

I am thankful to almighty god who gave me the morale to write this e-book. Suggestions, criticism and guidance are most welcome from readers of this e-book.


About the Author 2
Preface 3
Disclaimer 4
Chapter – 1 : Background of ICDS and certain general aspects 5
Chapter – 2 : ICDS – I Accounting Policies 14
Chapter – 3 : ICDS – II Valuation of inventories 17
Chapter – 4 : ICDS-III Construction Contracts 20
Chapter – 5 : ICDS-IV Revenue Recognition 25
Chapter – 6: ICDS-V Tangible Fixed Assets 30
Chapter – 7: ICDS-VI The Effects of Changes in Foreign Exchange Rates 36
Chapter – 8: ICDS-VII Government Grants 40
Chapter – 9: ICDS -VIII Securities 44
Chapter – 10: ICDS – IX Borrowing Costs 48
Chapter–11: ICDS – X Provisions, Contingent Liabilities and Contingent Assets 54
Important Links 57

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(CA. Tejas K. Andharia -B. COM, F.C.A., D.I.S.A.(ICAI),  D.I.R.M.(ICAI), Bhavnagar, Gujarat,

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Author Bio

Qualification: CA in Practice
Company: T. K. ANDHARIA & CO.
Location: BHAVNAGAR, Gujarat, IN
Member Since: 08 Apr 2018 | Total Posts: 38
He is Chartered Accountant by profession plus Song Writer, Composer, Piano player and Singer. One of his hobbies is to share technological knowledge . He was President of Bhavnagar C. A. Association for two consecutive terms. His Youtube Channel is "CA. Tejas Andharia" which contains videos on vario View Full Profile

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One Comment

  1. CA.. TEJAS ANDHARIA says:

    Effect of Schedule-ICDS will automatically go to the Schedule-A-OI, but no specific place is there in Schedule-BP to give effect of increase or decrease in the income due to ICDS. So, one can use following points of Schedule-BP to show this effect.

    In case of ITR-3 and ITR-5 : Row No. 23 or 24 [See Note given below] of Schedule-BP for addition effect and Row No. 32 of Schedule-BP for reduction effect.

    In case of ITR-6: Row No. 23 or 24 [See Note given below] of Schedule-BP for addition effect and Row No. 33 of Schedule-BP for reduction effect.

    In the same way, if addition/reduction is in income from other sources, one may use the relevant Rows of Schedule OS [1(d)(iii) & 1(h)(i)]

    Note: In Schedule-BP, Row No. 23 reads as -“Any other item of addition under section 28 to 44DA” in case of ITR-3 and ITR-6 and “Any other item of addition under section 28 to 44DB” in case of ITR-5. ICDSs are imposed u/s. 145(2), so it will be more appropriate to use Row No. 24 which reads as “Any other income not included in profit and loss account/any other expense not allowable…”. But at the same time, we hope that CPC will also process it with the same understanding, else we will be required to carry out rectification process in many cases.

    With Regards,

    CA. Tejas Andharia

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November 2020