😀 Free Tax consultation with Myitronline.

Income Tax efiling in India for FY 2023-24 (AY 2024-25)

We have changed the way people do tax filing in India. We don’t just get your tax return filed within minutes but get you maximum refunds in shortest time.

File ITR Now Hire eCA Now

Maintaining Book of Accounts for Company – Companies Act

All companies incorporated in India are required to keep a record of their obligations under the Companies Act, 2013. In addition, the Companies Act, a company registered in India will also be authorized by the Income Tax Act to take care of. records . In this article, we look at the record of company accounts, in accordance with the Companies Act, 2013.

Books of Accounts

Books of Accounts includes records maintained in respect of:

  • Amount or revenue received and expenditure and issues related to acquisitions and expenditure
  • Sale and purchase of goods and services
  • Assets and liabilities
  • Item cost as prescribed s / s 148 [2 (12)].

Place for Maintaining Book of Accounts of Company

The book of accounts must be kept in the company's registered office. However, after giving information to the Registrar of Companies, the Board of Directors may decide to keep or keep the book of accounts at any other place that is relevant to the business.

Maintaining Book of Accounts of Company – Online

The company can store its account books online or electronically under the following conditions:

  • Electronic records should be accessible in India.
  • Information must maintain the format in which it is produced and must remain complete and unchanged
  • Information provided by the branch should not be changed
  • Electronic records should be able to be readable
  • A backup copy will be stored on a server located in India
  • The company must contact the ROC annually with relevant information related to the service provider.

Maintaining Records of Branch Office

In the event that a company has more than one office, a large company account should be kept in a registered office. In addition, performance records at its branch office should be kept in the branch office itself. A standard summary report should be submitted to the registered office and should be kept open for inspection by directors.

Inspection of Book of Accounts

The Board of Directors of a company has the right to inspect the book of accounts and other books and documents of the company. However, when checking the

records of a subsidiary company, only a person authorized by the Board of Directors may be appointed.

Time Limit for Maintaining Book of Accounts

Company account books must be kept and maintained for at least 8 years prior to the financial year. The following people in the company will be responsible for keeping a book of accounts: <

  • Executive Director
  • Full-time Director, Finance Manager
  • Chief Financial Officer
  • Any other person charged with the Board of Directors
Failure to keep a company account book in terms of the details provided may result in a fine of up to Rs.5 lakhs of imprisonment for up to 1 year.

Frequently asked questions

Yes, As per Section 128 (1), the documents may be kept elsewhere in India as the Board of Directors may decide on the adoption of a resolution at a duly held Company Board.

Yes, the company needs to approach the ROC within 7 days of the decision on the completion and upload of E-Form AOC 5.

The terms of Article 128 (1) of the Code state that “as long as all or all of the above account books and other relevant documents can be kept in that part of India”, therefore, in my view, the company cannot keep records. outside of India.

Letters of account and other related documents or registers of the branch office will be kept at the branch office only if the appropriate summaries are sent from time to time to the registered office of the company or to a board designated in terms of section 128. (1)

The principle of Article 128 states that “As long as All or any of the above Account” is mentioned. Therefore, in my opinion, the company can only carry part of the standard books elsewhere outside the company's registered office and may leave the old or less needed books on a daily basis, the company's registered office. Provided that a relevant decision has been made indicating the types of registrants and documents to be kept in place outside the company's registered office.


Krishna Gopal Varshney

Krishna Gopal Varshney co-founder & CEO of Myitronline is amongst the top emerging startups of Asia and authorized ERI by the Income Tax Department. A dedicated and tireless Expert Service Provider for the clients seeking tax filing assistance and all other essential requirements associated with Business/Professional establishment. Connect to us and let us give the Best Support to make you a Success. ”

Was this article helpful?
25 out of 78 found this helpful

Contact Support

Not finding the help you need?

Submit a Ticket

Prosperous impression had delay

Email us

Reach us at