Requirment for maintaining books of accounts

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renga (Querist)
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23 February 2010 I have purchased a house in my native place chennai and occupied by my wife and parents.

I am working in mumbai and residing in a company provided accommodation.I am not receiving any HRA as company provided an accommodation. Company charges 15% of total salary as perquisites to calculate income tax.

My query is can I claim interest exemption for my own house in chennai under self occupied category? Can I also claim pricipal repayment u/s 80 c?

What are the documents to be submitted to claim exemption in case of self occupied as well incase of let out ?

Can you please help me to know experts?

MIHIR GANDHI

MIHIR GANDHI (Querist)
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23 February 2010 Dear All,
Please provide me the detials of requirment under various laws for maintaining books of accounts.
I only have detail of income tax (6 Years) and Companies Act (8 Years). But I want to know the said requirment under various laws such as Bonus Act, Grautity Act, PF Act, Service tax Act, Excise Act, Factory Act, etc.
Please forward me the siad detial as early as possible.

M Prabhakar Menon

M Prabhakar Menon (Expert)
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23 February 2010 How to give reply for 2 different querries?

Aashok Kumar Sharma online

Aashok Kumar Sharma online

(Expert)
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21 July 2025 Here’s a complete summary addressing both parts of your question:

✅ Part 1: Income Tax Claim – Housing Loan Benefits
You asked whether you can claim interest and principal repayment deductions for your self-occupied house in Chennai, while working in Mumbai and staying in company-provided accommodation.

🔹 Yes, you can claim the following:
1. Interest Deduction on Home Loan – Section 24(b)
Allowed up to ₹2,00,000 per annum for self-occupied house.

Since the Chennai house is occupied by your family, it qualifies as self-occupied.

Even though you stay in Mumbai, your main residence (as per law) can still be in Chennai.

2. Principal Deduction – Section 80C
Allowed up to ₹1,50,000 per annum.

Includes principal repayment on a home loan taken from approved institutions.

✅ Documents Required to Claim Deductions:
Purpose Documents Needed
Interest under Sec 24(b) Loan certificate showing interest paid
Principal under Sec 80C Loan certificate showing principal repaid
Self-occupied declaration Self-declaration stating the house is self-occupied
Ownership proof Possession letter, registry, or sale deed

✅ Part 2: Requirement for Maintaining Books of Accounts – Under Various Laws
Here’s a summary of legal requirements under different acts for maintaining books of accounts:

🔹 1. Income Tax Act, 1961
Section 44AA & Rule 6F:

Individuals in business/profession (above certain income limits) must maintain books.

Preservation: 6 years from the end of relevant assessment year.

🔹 2. Companies Act, 2013
Section 128:

Every company must prepare and keep books at its registered office.

Preservation: 8 years.

🔹 3. Goods & Services Tax (GST) Act
Registered persons must maintain:

Invoices, stock, input tax credit records, tax paid/collected.

Preservation: 6 years from annual return due date.

🔹 4. Provident Fund Act
Maintain employee-wise contribution register, salary register, challans.

Preservation: 3–7 years, depending on document type.

🔹 5. Payment of Gratuity Act
Records of gratuity paid, eligible employees.

Preservation: 3 years.

🔹 6. Payment of Bonus Act
Maintain payroll, bonus register, allocation records.

Preservation: 8 years from date of entry.

🔹 7. Factories Act, 1948
Muster roll, attendance, wage register, leave records.

Preservation: 3 years, minimum.

🔹 8. Service Tax (Now repealed; replaced by GST)
Maintain invoices, payment records, return copies.

Preservation: 5 years from relevant financial year.

🔹 9. Central Excise Act (Also repealed)
Maintain invoice books, daily stock accounts.

Preservation: 5 years.

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