Thursday, April 16, 2015

CBDT notifies 10 new standards for computation of taxable income

The Central Board of Direct Taxes (CBDT) has overhauled the way income needs to be computed
by businesses to calculate the income tax to be deposited with the exchequer. As against 12 proposed standards, the CBDT has now notified 10, covering Accounting Policies, Valuation of Inventories, Construction Contracts, Revenue Recognition, Tangible Fixed Assets, Effects of Changes in Foreign Exchange Rates, Government Grants, Securities, Borrowing Costs, and Provisions, Contingent Liabilities and Contingent Assets.

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