Is it compulsory to pring books of account
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
02 December 2009
Dear Sir/Madam
We are maintaining books of accounts of our compnay on computer system.
i want to know whether it is compuslory to print books of accounts and get closing balances signed by auditor. kindly give reference of relevent provisions.
Thank you
We are maintaining books of accounts of our compnay on computer system.
i want to know whether it is compuslory to print books of accounts and get closing balances signed by auditor. kindly give reference of relevent provisions.
Thank you
02 December 2009
Section 2(12A) of the Income tax Act,1961 permits to maintain books of accounts using computer system. Keeping printouts signed by Auditors is an accepted practice as part of good governance.
02 December 2009
agree
02 December 2009
agree
02 December 2009
Agree
Querist : Anonymous
Querist :
Anonymous
(Querist)
05 December 2009
Dear Sir,
Thank you for Reply. but your reply is not Specific. You have not mentiined position under companies act. You say it is healthy practice but it is compulsury under companies act or not?
Kinldy clearify furhter.
Thank you for Reply. but your reply is not Specific. You have not mentiined position under companies act. You say it is healthy practice but it is compulsury under companies act or not?
Kinldy clearify furhter.
01 August 2024
Under the Companies Act, 2013, and the Income Tax Act, 1961, there are specific requirements regarding the maintenance and presentation of books of accounts. Here’s a detailed look at whether it is compulsory to print books of accounts and get them signed by an auditor:
### **Companies Act, 2013:**
1. **Section 128: Books of Accounts:**
- **Maintenance of Books:** Section 128 of the Companies Act, 2013, mandates that every company must keep books of accounts at its registered office or other places as the Board of Directors may decide.
- **Electronic Format:** The Act does not explicitly require books of accounts to be printed; maintaining them in electronic form is permissible. However, the books must be kept in a manner that enables the company to prepare financial statements.
2. **Section 134: Financial Statements:**
- **Preparation and Signing:** The financial statements must be approved by the Board of Directors and signed by the Directors. They must be authenticated by the Directors and then submitted to the auditors.
- **Signature of Auditors:** The auditors must sign the audit report. However, the Act does not specifically mandate that the books of accounts themselves be printed and signed by the auditor.
3. **Section 143: Audit:**
- **Auditor’s Report:** The auditor is required to examine the books of accounts and report on the financial statements. The auditor's responsibility includes verifying the accuracy and completeness of the books maintained, whether in electronic or printed form.
### **Income Tax Act, 1961:**
1. **Section 44AA: Maintenance of Books of Accounts:**
- **Nature of Maintenance:** The Income Tax Act requires that books of accounts be maintained in such a manner that enables the assessee to comply with the provisions of the Act. Electronic records are acceptable as long as they are reliable and accessible.
- **No Requirement for Printing:** There is no explicit requirement under the Income Tax Act to print the books of accounts. However, the books must be kept in a manner that facilitates easy access and retrieval for tax assessments.
2. **Section 44AB: Audit of Accounts:**
- **Audit Requirements:** The section specifies the requirement for auditing the accounts but does not stipulate whether the books must be printed. The focus is on the auditor’s review of the accounts and ensuring compliance.
### **Practical Considerations:**
- **Internal Control:** While not legally mandated, printing books of accounts can serve as a good practice for internal control and record-keeping.
- **Auditor's Convenience:** Some auditors may prefer printed records for ease of verification, but this is a matter of preference rather than a legal requirement.
### **Conclusion:**
- **Legal Requirement:** Under the Companies Act, 2013, and the Income Tax Act, 1961, there is no explicit requirement to print books of accounts. Maintaining them electronically is acceptable, provided they meet the statutory requirements for accuracy and availability.
- **Practical Practice:** Printing books of accounts is not compulsory but is considered a healthy practice for ease of auditing and internal control.
You are complying with the law by maintaining books electronically, provided they are accurate and accessible for audit and tax purposes. It is advisable to check specific requirements with your auditor and for any internal policies or practical considerations they may have.
### **Companies Act, 2013:**
1. **Section 128: Books of Accounts:**
- **Maintenance of Books:** Section 128 of the Companies Act, 2013, mandates that every company must keep books of accounts at its registered office or other places as the Board of Directors may decide.
- **Electronic Format:** The Act does not explicitly require books of accounts to be printed; maintaining them in electronic form is permissible. However, the books must be kept in a manner that enables the company to prepare financial statements.
2. **Section 134: Financial Statements:**
- **Preparation and Signing:** The financial statements must be approved by the Board of Directors and signed by the Directors. They must be authenticated by the Directors and then submitted to the auditors.
- **Signature of Auditors:** The auditors must sign the audit report. However, the Act does not specifically mandate that the books of accounts themselves be printed and signed by the auditor.
3. **Section 143: Audit:**
- **Auditor’s Report:** The auditor is required to examine the books of accounts and report on the financial statements. The auditor's responsibility includes verifying the accuracy and completeness of the books maintained, whether in electronic or printed form.
### **Income Tax Act, 1961:**
1. **Section 44AA: Maintenance of Books of Accounts:**
- **Nature of Maintenance:** The Income Tax Act requires that books of accounts be maintained in such a manner that enables the assessee to comply with the provisions of the Act. Electronic records are acceptable as long as they are reliable and accessible.
- **No Requirement for Printing:** There is no explicit requirement under the Income Tax Act to print the books of accounts. However, the books must be kept in a manner that facilitates easy access and retrieval for tax assessments.
2. **Section 44AB: Audit of Accounts:**
- **Audit Requirements:** The section specifies the requirement for auditing the accounts but does not stipulate whether the books must be printed. The focus is on the auditor’s review of the accounts and ensuring compliance.
### **Practical Considerations:**
- **Internal Control:** While not legally mandated, printing books of accounts can serve as a good practice for internal control and record-keeping.
- **Auditor's Convenience:** Some auditors may prefer printed records for ease of verification, but this is a matter of preference rather than a legal requirement.
### **Conclusion:**
- **Legal Requirement:** Under the Companies Act, 2013, and the Income Tax Act, 1961, there is no explicit requirement to print books of accounts. Maintaining them electronically is acceptable, provided they meet the statutory requirements for accuracy and availability.
- **Practical Practice:** Printing books of accounts is not compulsory but is considered a healthy practice for ease of auditing and internal control.
You are complying with the law by maintaining books electronically, provided they are accurate and accessible for audit and tax purposes. It is advisable to check specific requirements with your auditor and for any internal policies or practical considerations they may have.
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