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RAMESHWAR RAI (PROPRITOR)     28 February 2012

Limitation for keeping records under epf act

for How many year accounts books & pf records kept by employer



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 1 Replies

Kumar Doab (FIN)     28 February 2012

The term "payroll records" encompasses many things....all types of records and accounting logs, payments of all types to different agencies, payments and calculations of pension and insurance, etc.


As a rule of thumb, 7 to 10 years is standard.

Why seven years? Your greatest risk of audit is in the first three years after you file your return, but you can still be audited up to six years later if you substantially underreport your income. Since we file our returns in the following year -- last year's returns are due in April of this year, for example -- adding seven years to the tax return year will give you the year that you can toss your return's documentation. This year, for example, you can toss tax-related documents filed for the 2002 tax year.


Need to keep them for as long as anyone involved might care.

In todays world of electronic records, many companies are keeping tape files for much longer..

How long a need for any specific record may exist depends on who is asking and what for. If the President of the company asks for something from those records from 25 years ago....he has a right and everybody will try to find them.

Valuable advice of learned experts/members is sought.


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