The Hindu Business Line : CBDT panel on accounting norms for I-T

THE Central Board of Direct Taxes (CBDT) has constituted an eight-member committee to formulate accounting standards under the Income-Tax Act 1961 to be followed by any class of assesses or for any class of income.

The panel, to be chaired by Mr K.D. Gupta, Chief Commissioner of Income-Tax, Lucknow, will specify accounting standards on revenue recognition, valuation of inventories, construction contracts, fixed assets, forex and higher purchase or lease, said official sources.

The members include Mr Arbind Modi, Commissioner of Income-Tax (CIT) Delhi, Mr B.D. Bishnoi, CIT, Income-Tax Appellate Tribunal, Delhi, Mr H. Srinivasulu, CIT, Mumbai, Mr M.P. Lohia, Director of Income-Tax (Foreign Tax), Mumbai, Mr S. Vikamsey, Chartered Accountant, Mumbai, Mr Ved Jain, Chartered Accountant, Delhi, and Mr R. Anand, Chartered Accountant, Chennai.

The existing provisions of the I-T Act stipulate the income chargeable under the head "profits or gains of business or profession" or "income from other sources" will be computed in accordance with either cash or mercantile system of accounting regularly employed by the assessee. The accounting standards formulated from time to time by the Union Government will have to be adopted by the assessee.

In fact, the legislative change in the I-T Act empowering the Union Government to formulate accounting standards for income-tax purposes was brought about in 1995 and made effective from April 1997.

The CBDT had formulated two accounting standards -- Accounting Standard I (relating to disclosure of accounting policies) and Accounting Standard II (relating to disclosure of prior period and extra ordinary item and changes in accounting policies).

Send this article to Friends by E-Mail

Stories in this Section
Gravy train chugs along

Credit offtake picking up, says Janki Ballabh

Paradip port fixes coal dust problem — 4 cos shortlisted for O&M contract

Govt to ratify Kyoto Protocol

Trade deficit with China at Rs 5,290 cr

`Time ripe for cos to enter Venezuela'

Manipur: A heady cocktail of alcohol, AIDS & drugs

NPPA raises penicillin prices

Kannur power project to be revived

CEA nod for TNEB project

Direct tax collections dip in July