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CA Final · Direct Tax Laws & International Taxation · Provisions to Counteract Unethical Tax Practices

Under Rule 235(7) of the Income-tax Rules, 2026, an Indian concern must keep and maintain the information and documents specified in sub-rule (3) for how long?

The documents must be kept for eight years from the end of the relevant tax year, as Rule 235(7) provides. The period runs from the tax year end and not from the transfer date, and six or ten years are not the prescribed periods.

  1. ASix years from the end of the relevant tax year
  2. BEight years from the end of the relevant tax yearCorrect
  3. CEight years from the date of the transfer
  4. DTen years from the end of the relevant tax year

Explanation

Rule 235(7) prescribes a period of eight years from the end of the relevant tax year. Counting from the date of transfer would give a different base, so the third option is wrong. Six and ten years are not prescribed.

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