Core concepts
- 01Ind AS impact on deferred tax — significant due to fair value, ECL, lease accounting.
- 02ICDS (Income Computation & Disclosure Standards) — divergence from Ind AS/AS for tax.
- 03Sec 115JB — book profit MAT computation aligned with Ind AS adjustments.
- 04Sale of subsidiary — capital gains (slump sale Sec 50B) + Ind AS 110 deconsolidation.
- 05ESOP — Ind AS 102 expense vs tax deduction at perquisite valuation.
Flowchart summary
FR vs Tax Cross-points | Ind AS 115 vs Sec 145A (revenue) | Ind AS 116 vs ICDS (leases / borrowing cost) | Ind AS 109 ECL vs Income Tax (actual bad debt) | 115JB MAT adjustments (FV gains, OCI items)
Exam-critical pointers
- ⭐ICDS-I matches AS-1 but no concept of 'prudence' as override.
- ⭐Sec 115JB(2C): adjustments for Ind AS — FV gain on PPE, equity instruments.
- ⭐Goodwill no longer depreciable for tax (Sec 32 amendment 2021).
- ⭐DT on Right-of-Use asset and Lease Liability — usually offsetting (net minimal DT).
Make it click