PRESERVATION OF BOOKS UNDER INCOME TAX ACT,1961

PRESERVATION OF BOOKS UNDER INCOME TAX - There is no such in writing that for how long a company have to preserved its Books of Accounts for Income Tax Purpose, But according to section 209 4 (A) of the Companies Act, a company should maintained its books of accounts for period of at least 8 years.

Now Question arise  as per Income Tax Act, Some CA's give opinion on this that every person should preserve books of accounts and other documents   for atleast 6 years from the end of relevent assessment year. They are giving there opinion by reading the following ,

RULE 6F (5) OF SECTION 44AA(3) (BARE ACT)
The books of account and other documents specified in sub-rule (2) and sub-rule (3) shall be kept and maintained for a period of ⁷⁵[six] years from the end of the relevant assessment year:

But One must understand the above provision , this section is for persons carrying on legal, medical, engineering or architectural profession or the profession of accountancy or technical consultancy or interior decoration or authorised representative or film artist and NOT FOR A COMPANY/NON COMPANIES.

POINT TO BE NOTED (MY OPINION)

153A. BARE ACT  Notwithstanding anything contained in section 139, section 147, section 148, section 149, section 151 and section 153, in the case of a person where a search is initiated under section 132 or books of account, other documents or any assets are requisitioned under section 132A after the 31st day of May, 2003, the Assessing Officer shall—

          (a)  issue notice to such person requiring him to furnish within such period, as may be specified in the notice, the return of income in respect of each assessment year falling within six assessment years referred to in clause (b), in the prescribed form and verified in the prescribed manner and setting forth such other particulars as may be prescribed and the provisions of this Act shall, so far as may be, apply accordingly as if such return were a return required to be furnished under section 139;

          (b)  assess or reassess the total income of six assessment years immediately preceding the assessment year relevant to the previous year in which such search is conducted or requisition is made

So a company must preserve its books of accounts for a period of at least 7 previous years as per Income Tax Act,1961 

Abhishek Gupta

Chartered Accountant

8556001601