Income Tax Computation and Income Standard proposed
The finance ministry has proposed standards for disclosing and computing of income, for the purpose of levying tax on companies. The draft, among other matters, provides for recognizing segment-wise income for works spread over a period of time. According to the draft 'Tax Accounting Standards', posted by the Central Board of Direct Taxes (CBDT) on the ministry’s website for comment, revenue for works spread over a period of time must be advance if a segment of the work is completed in a year, even if revenues have not been realized. This will make tax liabilities on these works coming to the exchequer much in advance.