Maintenance of Record

As per Income Tax Ordinance,2001 all business individuals are liable to keep data for six years. Sub Section 2 of Section 174 lays down that “unless otherwise authorised by the Commissioner, every taxpayer shall maintain in Pakistan such accounts, documents and records as may be prescribed”.

Sub Section 3 of Section 174 lays down

“The accounts and documents required to be maintained under this section shall be maintained for Six years after the end of the tax year to which they relate “

It means the accounts and record of a company shall be kept for six year after end of such year. Accounting record of 2010 can be discarded in after June 2016. However if any legal proceeding is pending in the court of law or tribunal or any adjudicating authority, then the reocord of such tax/financial year shall be kept or maintained until the conclusion of the such case.

Sub Section 3 of Section 174  adds a provision (explanation)

”Provided that where any proceeding is pending before any authority or court the taxpayer shall maintain the record till final decision of the proceedings”