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Income computation and disclosure standard is one of the competent standard which minimizes the divergence between accounting income and tax income. This standard does not require any additional books of accounts to be maintained by the business organizations but only the thing is the manner of computation of income for the purpose levying of tax under the head ‘Profit or gains from business or profession’ and ‘Income from other sources’. The present study is purely based on secondary data and is a descriptive study to analyse the impact of ICDS on business transactions and its implementation challenges in India.

Emerging Trend in Indian Direct Taxation: An Analysis of Income Computation and Disclosure Standards