Accounts and record maintenance under various laws

Indian laws are quite dynamic in nature and different statutes have their own requirements. Important part is that Indian companies have to comply with each requirement simultaneously. A classic example of such an issue is preservation of books of accounts and related records under various laws. In order to clear all confusions and create clarity, we have elaborated prescribed requirements under various laws and put them together under one article.

1. GST- Section 36 of the CGST Act, 2017:

• Who is required to maintain? –  Every registered person.
• 6 years from the due date of furnishing of annual return, or
• 1 year after final disposal of such appeal or revision or proceedings or investigation.

2. Income Tax Law- Rule 6F of the Income Tax Rules:

• Who is required to maintain?- Persons carrying on certain professions u/s 44AA(3)
• 6 years from the end of the relevant assessment year, orif the assessment is reopened under Section 147 of the Act, till the time assessment is completed.

3. Income Tax Law- Rule 10D of the Income Tax Rules:

• Who is required to maintain? – Every person who has entered into an international transaction or a specified domestic transaction.
• 8 years from the end of the relevant assessment year.

4. Company Law- Section 128(5) of the Companies Act:

• 8 financial years immediately preceding a financial year.

5. Company Law- Section 239 of the Companies Act, 2013:

• Who is required to maintain? – Every company which has been amalgamated with, or whose shares have been acquired by, another company.
• The records shall not be disposed of without the prior permission of the Central Government.

6. Company Law- Section 347 of the Companies Act 2013:

• Who is required to maintain?- A company which has been wound-up and of its liquidator for a period of 5 years from the date of its dissolution.

Also read – Compliances to be done by a private limited company in India

7. SEBI Guidelines- Regulation 18 of SEBI (Stock Brokers & Sub-brokers) Regulations:

• Who is required to maintain? – Every stock broker.
• Minimum period of 5 years.

8. SEBI Guidelines- Regulation 15 of the SEBI (Registrars to an Issue and Share Transfer Agents) Regulations:

• Who is required to maintain? – The registrar to an issue or share transfer agent Minimum period of 3 years

9. SEBI Guidelines- Regulation 50 of the SEBI (Mutual Funds) Regulations:

• Who is required to maintain? – Every asset management company
• Minimum period of 8 years

10. Prevention of Money-Laundering Act – Section 12 of PMLA:

• 5 years from the date of transaction

We are sure that the reader shall find above article useful.