Under the Income-tax Act, 2025, books of account and related documents must be kept for seven tax years from the end of the relevant tax year (Rule 46(9), Income-tax Rules, 2026). Under the 1961 Act the period was six years from the end of the assessment year. Records behind large transactions, losses, capital assets and open proceedings should be kept longer.
Quick answer: retention periods at a glance
| Record | Minimum period | Basis |
|---|---|---|
| Books of account and vouchers, FY 2025-26 and earlier | 6 years from the end of the relevant assessment year | Section 44AA(3), Income-tax Act, 1961; Rule 6F, Income-tax Rules, 1962 |
| Books of account and vouchers, tax year 2026-27 onwards | 7 tax years from the end of the relevant tax year | Section 62, Income-tax Act, 2025; Rule 46(9), Income-tax Rules, 2026 |
| Any record, where reassessment has been initiated | Until the reopened assessment is completed | Rule 46(10), Income-tax Rules, 2026 |
| Records of high-value transactions (₹50 lakh or more of escaped income) | Prudent: up to 10 years for years under the 1961 Act; up to 6 years 3 months for years under the 2025 Act | Section 149 (1961 Act); section 282 (2025 Act) |
| Capital asset, loss and foreign asset records | Holding period or carry-forward period, plus the limitation period | See the section on longer retention below |
The period is counted from the end of the relevant year, not from the date the return was filed.
Which Act applies to your records
The Income-tax Act, 2025 came into force on 1 April 2026 and replaced the Income-tax Act, 1961. It replaces the terms “previous year” and “assessment year” with a single “tax year”.
- FY 2025-26 (AY 2026-27) and earlier years stay under the 1961 Act. Reassessment provisions of the 2025 Act (sections 279 to 286) apply to tax year 2026-27 and later, and tax years beginning before 1 April 2026 continue under the old Act.
- FY 2026-27 (tax year 2026-27) onwards is governed by the 2025 Act and the Income-tax Rules, 2026.
In practice, a taxpayer’s records for the next few years will fall under two different retention regimes, and the dates must be tracked separately.
Statutory retention of books of account
Under the 1961 Act (up to FY 2025-26). Section 44AA(3) read with Rule 6F requires specified professionals to keep prescribed books and documents for six years from the end of the relevant assessment year. They are generally kept at the place of practice, and must be kept longer where an assessment is reopened.
Under the 2025 Act (tax year 2026-27 onwards). Section 62 replaced section 44AA, and Rule 46 of the Income-tax Rules, 2026 replaced Rule 6F. Rule 46(9) requires the books and documents specified in sub-rules (1), (4) and (6) to be kept for seven tax years from the end of the relevant tax year. Rule 46(10) applies where an assessment has been reopened under section 279 of the 2025 Act or under section 147 of the 1961 Act: the books and documents that were being kept when the assessment was reopened must continue to be kept until the reopened assessment is completed.
Points to note about the specified-professional books:
- Under Rule 46(3), the list in Rule 46(4) does not apply to a person whose total gross receipts in the profession did not exceed ₹1,50,000 in any one of the three years immediately preceding the tax year, or to a newly set-up profession whose receipts for the year are not likely to exceed that amount. The words “any one of” can be read in more than one way, so read the rule itself for your case.
- The threshold for bills, receipts and vouchers in Rule 46(4) is ₹250, against ₹50 under Rule 6F. Under Rule 46(7), the requirement to keep books at the place of the profession applies only to books of a tax year that has not ended. Records of a closed tax year need not be kept there, but must still be kept for the retention period.
These rules apply to persons required to maintain books. Other taxpayers, such as salaried individuals, should still keep proofs of income, deductions and tax paid, because they will need them if the return is questioned.
Why the statutory minimum may not be enough
The retention period tells you how long you must keep books. The reassessment limit tells you how long the department can reopen a year. Records should outlast the second period.
Years under the 1961 Act (up to AY 2026-27). Section 149(1), as substituted by the Finance Act, 2021, bars a reassessment notice after three years from the end of the relevant assessment year. It allows a notice after three years but up to ten years only if the Assessing Officer has books of account, documents or evidence showing that the escaped income, represented as an asset, expenditure or entry, is ₹50 lakh or more for that year.
Years under the 2025 Act (tax year 2026-27 onwards). Section 282 provides the time limits.
| Notice | General limit | Extended limit (escaped income of ₹50 lakh or more) |
|---|---|---|
| Notice under section 280 (reassessment) | 4 years 3 months from the end of the tax year | 6 years 3 months |
| Show-cause notice under section 281 | 4 years | 6 years |
Please note: Section 282(3) adds that no notice under section 280 or 281 can be issued within one year from the end of any tax year. Some commentaries quote 3 and 10 years for the 2025 Act, but the text of section 282 published on the Income Tax Department’s website gives the periods above. The 3 and 10 year limits belong to section 149 of the 1961 Act.
Notice mechanics under section 280. A notice must give at least 30 days to file the return, and the period may not exceed three months from the end of the month in which the notice is issued (section 280(1)(c), substituted by Act No. 4 of 2026 with effect from 1 April 2026). No notice can be issued unless the Assessing Officer has information suggesting that income has escaped assessment (section 280(4)). Sub-section (6) lists what counts as such information.
Search cases. Under section 301(a) of the 2025 Act, the block period covers six tax years preceding the tax year of the search or requisition, plus the part of the search year up to the date of the last authorisation. The procedure is in sections 294 to 296.
A seven-tax-year retention period therefore covers the longest ordinary reassessment window under the 2025 Act, which is 6 years 3 months.
Worked examples with dates
| Year | Governing Act | Books to be kept until | Reassessment notice barred after (general) | Reassessment notice barred after (₹50 lakh or more) |
|---|---|---|---|---|
| FY 2025-26 (AY 2026-27) | 1961 Act | 31 March 2033 (6 years from end of AY) | 31 March 2030 (3 years) | 31 March 2037 (10 years) |
| FY 2026-27 (tax year 2026-27) | 2025 Act | 31 March 2034 (7 tax years from end of tax year) | 30 June 2031 (4 years 3 months, section 280) | 30 June 2033 (6 years 3 months, section 280) |
For FY 2025-26, the 10-year window is why it is prudent to keep the records of large transactions beyond the six-year books period. For FY 2026-27, the seven-tax-year rule already covers the longest ordinary window.
Records that must be kept longer
- Capital assets (property, shares, mutual funds, gold). Keep purchase deeds, contract notes, improvement bills and ownership proof for the whole holding period. The cost of acquisition is needed at the time of sale, which may be decades later.
- Losses carried forward. Keep the supporting records until the loss is fully set off or lapses, and then for the limitation period after the last year in which it was used.
- Pending proceedings. Keep everything until final disposal, including appeals, rectification and penalty proceedings. For reopened assessments, Rule 46(10) already requires this.
- Foreign assets and income. One commentary on the 2025 Act says undisclosed foreign assets fall outside the Income Tax Act’s time limits. Treat foreign asset records as needing indefinite retention and check the Black Money Act separately.
- Updated returns. The window to file an updated return was extended from two to four years in Budget 2025, so documents behind a return must be available at least that long.
- Specific regimes. Transfer pricing documentation, trust and exemption records, and tax audit working papers have their own requirements, which are not covered here.
Electronic records and other laws
Electronic books. Rule 46(8) of the Income-tax Rules, 2026, effective from 1 April 2026, requires taxpayers who keep books electronically to keep them accessible in India and to maintain a backup on servers physically located in India, updated daily. Retain the backups for the same seven tax years.
Other laws have their own periods. These are outside the Income-tax Act and should be checked against the current text:
- Section 36 of the CGST Act, 2017: records for 72 months from the due date of the annual return for the year concerned.
- Section 128 of the Companies Act, 2013: books of account for not less than eight financial years.
A practical retention schedule
| Document | Suggested retention |
|---|---|
| Books of account, vouchers, bank statements (business or profession) | 7 tax years from end of the tax year (6 years from end of AY for FY 2025-26 and earlier); prudently up to 10 years for FY 2025-26 and earlier where large transactions exist |
| Filed returns, acknowledgements, computation sheets | Same as books; keep a permanent copy of the last filed return for each year |
| Form 16, Form 16A, Form 26AS and AIS | Same as books |
| Deduction proofs (insurance, donations, medical, rent) | Same as books |
| Purchase and sale documents of property, shares and funds | Holding period, plus the limitation period after sale |
| Loss computation and carry-forward records | Until fully set off, plus the limitation period |
| Notices, orders, appeal papers | Until final disposal, then as per the year concerned |
| Foreign asset and foreign income records | Indefinitely |
Frequently asked questions
How many years should I keep income tax records in India?
Keep books of account for 7 tax years from the end of the relevant tax year for tax year 2026-27 onwards, and 6 years from the end of the assessment year for FY 2025-26 and earlier. Keep records of large transactions, losses and capital assets longer.
Is the retention period 6 years or 7 years?
Both are correct, for different years. Six years comes from Rule 6F under the 1961 Act. Seven tax years comes from Rule 46(9) under the 2025 Act and applies from tax year 2026-27.
Can the Income Tax Department reopen a case after six years?
For years under the 1961 Act, a notice can be issued up to ten years after the end of the assessment year if the escaped income is ₹50 lakh or more and is shown by an asset, expenditure or entry. For tax year 2026-27 onwards, section 282 of the 2025 Act allows a section 280 notice up to 6 years 3 months in such cases.
Do I have to keep documents after receiving an intimation or a refund?
Yes. Processing a return does not close the year. Reassessment, scrutiny and rectification can still arise within the time limits above.
How long should I keep property or share purchase documents?
For the whole period you hold the asset and for the limitation period after you sell it, because the cost of acquisition is needed to compute capital gains.
Do salaried taxpayers need to follow the same rule?
Rule 46 applies to persons required to keep books of account under section 62(1)(b) and to the professions it lists. A salaried taxpayer with no business or professional income would ordinarily fall outside it, but should keep Form 16, Form 26AS, AIS and deduction proofs for at least the reassessment window of the relevant year. Check section 62 for your own case.
Are electronic copies acceptable?
Books may be kept electronically, but Rule 46(8) of the Income-tax Rules, 2026 requires them to be accessible in India with a daily backup on servers located in India.
Sources
Official text of the Income-tax Act, 2025, the Income-tax Rules, 2026 and the Income-tax Act, 1961 (including sections 280 and 282 and Rule 46), with CBDT circulars, notifications and FAQs:
Last reviewed on 10 November 2026. Sections 280 and 282 and Rule 46 were checked against the official extracts from the Income Tax Department. Verify any other section or rule number against the official text before relying on it.
This article is for general information only and is not professional advice. It does not create any professional relationship. Tax laws change often, so please check the position for your facts and year.