Maintainance of books of accounts

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CA. Ankit Bhandari

CA. Ankit Bhandari (Querist)
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27 October 2012 For how many years books of accounts have to be preserved for a private company.

CA Anurag Nema

CA Anurag Nema (Expert)
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27 October 2012 Its 8 years or life of company whichever is less.

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CA. Sunil Kumar

CA. Sunil Kumar (Expert)
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27 October 2012 AS per Section 209(4A)

The books of accounts of every company relating to a period of not less than eight years immediately preceding the current year [together with the vouchers relevant to any entry in such books of account] shall be preserve in good order.

Provided that in the case of a company incorporated less than eight years before the current year, the books of account for the entire period preceding the current year[together with the vouchers relevant to any entry in such books of account] shall be so preserved.

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CA. Ankit Bhandari

CA. Ankit Bhandari (Querist)
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27 October 2012 can we destroy all the books older than 8 years or need to preserve something?

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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28 October 2012 You have to keep all the Books of Accounts beyond eight years also. However, Sales Bills, Purchases Bills and other vouchers may be destroyed.

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CA. Ankit Bhandari

CA. Ankit Bhandari (Querist)
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28 October 2012 why we have to keep all books of accounts beyond 8 years?
is it required by any law?

V K Bajaj

V K Bajaj (Expert)
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28 October 2012 Mr Bhandari!

Mr Anurag, Sunil and Bafna has answered clearly and correctly.

It is a matter of convenience if books beyond 8 yrs are kept. My experience says keep the books and other documents to the extent you can keep without considering the limitation of Law of 8 yrs. Many times old record helps.

contact@vkbajaj.co.in