Question
What books of accounts must a business keep, and for how long?
Answer
Bottom line: A company must keep proper books for at least 8 years; income-tax rules require 6 years.
1. Companies Act
Section 128 requires every company to maintain books on an accrual, double-entry basis and keep them for a minimum of 8 financial years.
2. Income-tax
Section 44AA with Rule 6F requires specified persons to keep books for 6 years from the end of the relevant assessment year.
3. Practical rule
A company follows the longer 8-year period, and keeps records longer if any assessment is reopened.
This answer is general information based on the law as it stood when written and is not professional advice on your specific situation. Verify the current position and consult a qualified professional before acting. See our disclaimer.