CBDT constitute a panel to align ICDS with AS

The Central Board of Direct Taxes (CBDT), in coordination with the Ministry of Corporate Affairs (MCA), is setting up a joint panel by the end of March 2026 to align Income Computation and Disclosure Standards (ICDS) with Indian Accounting Standards (IndAS). 

This initiative, announced following the Union Budget 2026-27, aims to:

• Reduce Compliance Burden: Streamline tax computation rules to align with accounting standards, reducing the need for separate, complex tax adjustments.
• Minimize Litigation: Address disputes arising from differences between accounting and tax frameworks.
• Improve Efficiency: The panel will include industry representatives and members of the Institute of Chartered Accountants of India (ICAI) to ensure practical implementation.