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Books of Accounts Backup and Audit Trail Compliance - India

edited Jun 2, 2025 2:44PM in Ask A Guru 5 comments

In India, The Ministry of Corporate Affairs (MCA) has tightened its grip on data security with the "Companies (Accounts) Fourth Amendment Rules, 2022," announced in August 2022.

As per the Accounts Rules, effective from April 1st, 2023, MCA mandated that mandating daily backups of all electronic books of account and relevant documents of companies utilising accounting software for bookkeeping adhere to the following requirements:
a) The accounting software should have the capability to record an audit trail for every transaction.
b) An edit log must be created to track any changes made to the books of accounts, including the date of each change.

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