Draft accounting rules for real estate projects issued

13 Jun 2017 Editorial Team

The Finance Ministry, in May, issued a fresh draft of the Income Computation and Disclosure Standard (ICDS) for real estate transactions, which could lead to a higher tax incidence on real estate projects. With the Real Estate (Regulation and Development) Act, 2016 (RERA) coming into effect from May 1, the draft norms propose to do away with the condition of obtaining all ‘critical approvals’ for revenue recognition. The norms states that since the recognition of revenue under other conditions is deferred up to incurrence of 25 per cent of the construction and development cost (which does not include land cost), the condition of obtaining critical approval is not found by the Committee to be very relevant. Also, the proposed norms do not provide for capping the recognition of revenue based on the stage of completion determined with reference to the project cost incurred.

The fresh draft is based on the guidance note issued on real estate transactions by the Institute of Chartered Accountants of India last year that was reviewed by a government committee. In all, it has proposed changes in five areas, including the definition of project and project cost, revenue recognition, application of percentage of completion method (POCM) for real estate projects and transferable development rights.

The Central Board of Direct Taxes (CBDT) then sought comments from stakeholders by May 26, after which the norms will be finalised. The draft has also proposed to define the project as a set of units which are connected by basic facilities and not the earlier proposed common amenities. As per reports, the norms could offer more clarity to taxation of computable income in real estate but could also have a higher tax impact.

Infrastructure Energy

16 Jul 2025

Shree Cement Boosts Green Goals with 6 MW Solar Plant in Roorkee

Shree Cement, one of India’s leading cement producers, has commissioned a 6.0 MWp solar power plant at its Roorkee unit in Uttarakhand. Strategically located next to its existing cement operations, the plant marks a significant step forward in the company’s journey towards its RE100 targets and decarbonization goals.With this latest addition, solar capacity at the Roorkee facility has grown sevenfold from 1.0 MWp to 7.0 MWp. Shree Cement’s total solar footprint now stands at an impressive 293.5 MWp, reinforcing its leadership in sustainable manufacturing within India’s cement sector.Ne..

Covestro India, CSIR-NCL Partner to Recycle Polyurethane Waste

Convestro (India) National has signed a Memorandum of Understanding (MOU) with the CSIR- Chemical Laboratory (NCL) launching an innovative Corporate Social Responsibility project aimed at developing sustainable upcycling solutions for polyurethane materials, addressing the critical limitations in current recycling technologies.The collaborative project will explore innovative approaches to transform polyurethane waste into valuable chemical building blocks. This research aims to develop commercially viable technologies that could greatly improve the circularity of polyurethane materials while ..

Aimtron Electronics Raises Rs 1 Bn via Warrants for New Facility

Aimtron Electronics, a fast-growing Electronics System Design and Manufacturing (ESDM) company, hased a fundraise of approximately Rs 1 billion through the issuance of convertible warrants on a preferential basis. The round includes participation from the promoter group including Mukesh Vasani and Nirmal Vasani along with a host of marquee investors.The Board of Directors of Aimtron Electronics has approved the issuance of up to 14,79,000 warrants of the company, at the price of Rs 666 per warrant each convertible into, for one fully paid-up equity share of the company of face value of Rs 10 a..

Draft accounting rules for real estate projects issued

Shree Cement Boosts Green Goals with 6 MW Solar Plant in Roorkee

Covestro India, CSIR-NCL Partner to Recycle Polyurethane Waste

Aimtron Electronics Raises Rs 1 Bn via Warrants for New Facility

Latest Updates

Advertisement

Recommended for you

Advertisement

Subscribe to Our Newsletter

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Advertisement

Modal Heading

First Name *

Last Name *

Industry *

Email Address *

Mobile Number *

Password *

Confirm Password *

Subscribe to our Newsletter

Email Address *

Password *

Please enter the details

Email Address

Modal Heading

First Name *

Last Name *

Industry *

Email Address *

Mobile Number *

Password *

Confirm Password *

Subscribe to our Newsletter

Email Address *

Password *

Please enter the details

Email Address