Difference in ICAI and Income Tax Standards :Government Grants

The CBDT has now notified the Income Disclosure and Tax Accounting Standards vide notification no. 32/2015, F. No. 134/48/2010-TPL, dated March 31, 2015. Comparative study of Accounting Standard issued by ICAI, and notified TAS has been given hereunder

Income Computation and Disclosure Standard VII relating to government grants

This Income Computation and Disclosure Standard is applicable for computation of income chargeable under the head “Profits and gains of business or profession” or “Income from other sources” and not for the purpose of maintenance of books of accounts. In the case of conflict between the provisions of the Income-tax Act, 1961 (‘the Act’) and this Income Computation and Disclosure Standard, the provisions of the Act shall prevail to that extent

Accounting Standards issued by ICAI	Income Computation and Disclosure Standards (ICDS)
GOVERNMENT GRANTS
A. Recognition of Government grants
Mere receipt of a grant is not necessarily conclusive evidence that the conditions attached to the grant have been or will be fulfilled.	ICDS provides that recognition of Government grant shall not be postponed beyond the date of actual receipt. [Para 4(2)]
B. Transitional Provisions
-	All the Government grants which meet recognition criteria on or after 01-04-2015 shall be recognized for previous year commencing on or after 01-04-2015 in accordance with provisions of this standard after taking into account the amount, if any, of the said Government grant recognized for any previous year ending on or before 31-03-2015.