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Feb 13, 2025
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Rules on construction & service contracts now part of main I-T law
The new Income Tax Bill, 2025 provides for a specific section which outlines the rules for determining profits and gains from construction contracts and service contracts for the purpose of computation of tax.
In the I-T Act, 1961, the ‘Income Computation & Disclosure Standards’ (ICDS) were introduced as a separate section, distinct from the provisions governing profits and gains from business and profession. But the bill seeks to integrate the ICDS provisions within the broader framework of business and profession income, streamlining its application and interpretation, say experts.
“This alignment is expected to enhance clarity and consistency in tax computation, reducing ambiguity in the treatment of income and ensuring uniform compliance across businesses,” said Amit Maheshwari, tax partner, AKM Global.
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