Records including books of account and source documents and data in any electronic media must be maintained for 5 years immediately after the financial year to which such records pertain.

What is proper books of accounts?

proper books of account means such books or accounts as are necessary to exhibit and explain the transactions and financial position of the trade or business of the company and includes books containing entries from day to day of all cash received and cash paid and any contracts, invoices or other underlying …

How long are books of accounts maintained?

8 years
Duration for which the books needs to be maintained Books should be maintained for a period of 8 years from the end of the relevant financial year.

How long are books of account required to be preserved?

INCOME-TAX ACT, 1961 Assessees are required to preserve the specified books of account for a period of 6 years from the end of the relevant assessment year, i.e., for a total period of 8 previous years.

Who is required to maintain books of accounts under Income Tax Act?

It is generally seen that there is confusion among taxpayers about maintenance of books of accounts under Income Tax Act like who is required compulsorily to maintain the books of accounts and for how many years one has to keep his books of accounts. Some views are expressed on this topic as follows:

How long do financial records have to be maintained?

financial year to which such records pertain. • Records maintained under various other laws in force from time to time would be acceptable. prescribed by SEBI under relevant Regulations must be maintained for a minimum period of 5 years. SEBI under relevant Regulations must be maintained for a minimum period of 8 years.

When to compulsorily maintain books of accounts?

If the sale/turnover/gross receipts from the business or profession is more than Rs. 25,00,000 or the income from business or profession is more than Rs. 2,50,000 in any of the 3 preceding years, then books of accounts will be compulsorily maintained. Following professions are covered under this provision: