Abhishek Kumar (Business) (34 Points)
05 October 2008Can any one tell me how long is it mandatory to keep our books & vouchers in safety so that they can produced when a taxman demands?
For Instance:
In my firms balance sheet I have a loan which is being carried forward from FY 96-97. Can the taxman ask for proof of the way we got the loan I.e Cash/Cheque etc. My case is in scrutiny & I will shortly appear on the 1st date.
Sunali
(Learner)
(1317 Points)
Replied 05 October 2008
Hi..
As per sec 44AA of IT Act, books of account and documents have to be kept and maintained for a period of six years from the end of the relevant assessment year..
So, in ur case i guess the documentary proof of loan taken on F.Y. 1996-97 need not be kept, however if its a bank loan, thn of course thr won't be any question...
Abhishek Kumar
(Business)
(34 Points)
Replied 05 October 2008
Dear Sunali,
It's not a bank loan. It was given by my mother to our firm. Though, she herself is a partner. My Tax Consultant (An Advocate) says that we will have to show documentary proof.
Jitender
(Chartered Accountant)
(8724 Points)
Replied 06 October 2008
records upto six years are to be kept under income tax act.
& notice u/s 147 can be issued upto six years therefore ,no need to worry abt transactions taken beyoond six years span.
Piyush Kumar Rastogi
(CA Practice )
(37 Points)
Replied 07 October 2008
| Originally posted by :Abhishek Kumar | ||
| " | Dear Sunali, It's not a bank loan. It was given by my mother to our firm. Though, she herself is a partner. My Tax Consultant (An Advocate) says that we will have to show documentary proof. |
" |
Piyush Kumar Rastogi
(CA Practice )
(37 Points)
Replied 07 October 2008
| Originally posted by :Abhishek Kumar | ||
| " | Dear Sunali, It's not a bank loan. It was given by my mother to our firm. Though, she herself is a partner. My Tax Consultant (An Advocate) says that we will have to show documentary proof. |
" |
IN THIS ALSO YOU HAVE TO KEEP BOOKS OF ACCOUNT AND VOUCHERS UP TO SIX YEARS .
CAclubindia
