Guidance Note issued on Inventory Valuation Under the Income Tax Act – April 2024

By: Admin
May 13, 2024
Categories: ICMAI|News
4 Min Read

The Institute of Cost Accountants of India has released a “Guidance Note on Inventory Valuation under the Income-tax Act, 1961” to aid CMA professionals in understanding Section 142 (2A) of the IT Act – April 2024 edition.

The amendment to Section 142 (2A) empowers Assessing Officers to require inventory valuation by practicing Cost Accountants using Form 6D, ensuring compliance with the law.
This amendment seeks to enhance transparency and accuracy in inventory valuation, thereby promoting fair tax assessment and preventing revenue leakage.
The publication aims to provide structured professional guidance on legal provisions, amendments, and computation methodologies related to inventory valuation, emphasizing the crucial role of Cost Accountants.
It is anticipated that this Guidance Note will be a valuable resource for Cost Accountants, aiding them in understanding the intricacies of inventory valuation and contributing to more accurate assessments, thereby curbing tax evasion and concealment.
The complete Guidance Note can be accessed at: https://a2z-bucket.s3.ap-south-1.amazonaws.com/