Time period for Accounts/Income tax/Excise Record

[RAM SHARMA]

Dear Experts, Please suggest and quote any notification/circular regarding all legal financial records maintain by the company. Thanks

[A Wilson]

Income-tax

Rule 6F(5) provides that the books of accounts and other documents  are to be kept for at least 6 years from the end of relevant assessment year.

You should also go through the reopening of assessments u/s.149. 

149. ¹[(1) No notice under section 148 shall be issued for the relevant assessment year, -

²[(a) if four years have elapsed from the end of the relevant assessment year, unless the case falls under clause (b) ³[or clause (c)];

(b) if four years, but not more than six years, have elapsed from the end of the relevant assessment year unless the income chargeable to tax which has escaped assessment amounts to or is likely to amount to one lakh rupees or more for that year.]

³[(c) if four years, but not more than sixteen years, have elapsed from the end of the relevant assessment year unless the income in relation to any asset (including financial interest in any entity) located outside India, chargeable to tax, has escaped assessment.]

 Central Excise/Service tax - 5 Years

B.  Time Limit

Section 73(1) prescribes the time limit for issuance of show cause notice as: -

Situation	Time-limit
Where short levy, non levy, short payment, non payment or erroneous refund of service tax due to: - (a) fraud; or (b) collusion; or (c) wilful mis-statement; or (d) suppression of facts; or (e) contravention of any of the provisions of this Chapter or of the rules made thereunder with intent to evade payment of service tax. [Known as extended period of limitation]	Five years from the relevant date

 

Thanks & Regards

A.Wilson

AI Summary

Companies Must Keep Tax Records for 6 Years Per Income-tax Rule 6F(5); 5 Years for Excise and Service Tax. A user inquired about the retention period for legal financial records maintained by a company, specifically regarding income tax and excise records. An expert responded that, per Income-tax Rule 6F(5), books of accounts and documents should be kept for at least six years from the end of the relevant assessment year. Additionally, Section 149 details conditions under which assessments can be reopened, with varying time frames based on the circumstances. For central excise and service tax, a five-year retention period applies, particularly in cases involving fraud or intent to evade tax.