Budget 2026-27: Centre Proposes MCA–CBDT Panel To Integrate ICDS Into IndAS
The Union Budget of 2026 has proposed the constitution of a Joint Committee of the Ministry of Corporate Affairs and the Central Board of Direct Taxes (CBDT) to incorporate the requirements of the Income Computation and Disclosure Standards (ICDS) into the Indian Accounting Standards (IndAS)
Presently, ICDS governs the computation of taxable income under the Income-tax Act, while IndAS applies to financial reporting by companies. The coexistence of two parallel frameworks has often resulted in mismatches between accounting profits and taxable income. This has led to higher compliance costs, complex reconciliations, and frequent tax disputes.
This proposed Joint Committee aims to address these inconsistencies by aligning tax computation principles closely with professional accounting standards.
By integrating ICDS requirements into IndAS, the government seeks to improve consistency, reduce interpretational ambiguities, and enhance predictability in tax assessments.