Keeping records in digital format

[pradip patwardhan]

Dear sir,

My query is regarding keeping records for the income tax and other indirect taxes. Now days we all are promoting about using e-paper, e-invoices to save a paper (to save the trees) but same time we need to keep records of business for long time for the department scrutiny, audit purpose. But instead of physical records we can keep some business related invoices or papers in format of soft copies and we can make it available in future while govt. scrutiny and other purpose. Now we see that in case of airline and railway traveling the railway and Airlines also allow soft copy of e-tickets then we don’t need to take a print out and can keep it in future for business traveling expenses purpose. So doubt is can we keep the records (which are not mandatory to print) in digital format (soft copy) instead of physical to minimize the records size and indirectly to save papers?? Please throw some lights on this issue with your expert opinion.

Regards,

Pradip Patwardhan

[DR.MARIAPPAN GOVINDARAJAN]

Dear Sir,

You can keep the records in digital format instead of physical one.

Regards,

Dr. M.Govindarajan

AI Summary

Digital record retention permitted: electronic invoices and e-tickets may be kept as soft copies for tax and audit purposes. The operative response affirms that records required for income tax and indirect tax purposes may be kept in digital format rather than as physical documents. Electronic invoices and e-tickets that are not required to be printed can be preserved as soft copies and produced for departmental scrutiny, audit or to substantiate business expenses, provided that such digital retention complies with the relevant statutory and procedural retention obligations.