Preservation-period of books of Accounts under Income tax Act

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If your yearly turnover exceeds £5 crore and your accounts are audited annually, you must preserve your account books for 6 years from the end of the relevant assessment year. This requirement, as per Rule 6F, applies to both professions and businesses, ensuring compliance with the Income Tax Act.

Mahabir Prasad Agarwal

Mahabir Prasad Agarwal (Querist)

14 January 2023 Sir, for how many years I have to keep / preserve my account books for the purpose of Income tax act, if my yearly turnover is more than 5.00 crores and my accounts are audited every year ?

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

15 January 2023 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.

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Mahabir Prasad Agarwal

Mahabir Prasad Agarwal (Querist)

16 January 2023 Sir, can you tell me under which section and rule, the above preservation period is prescribed ?

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

16 January 2023

Books of accounts as per Rule 6F

Mahabir Prasad Agarwal

Mahabir Prasad Agarwal (Querist)

16 January 2023 But sir, I have some confusion/doubt in this regard. Reading this rule, it appears that this rule applies only to professions only. Nowhere in this rule, the word "business" is mentioned . Please remove my doubt .

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

16 January 2023 It's also applicable to business.

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