Income tax department had introduced Rule 17AA on 10-08-2022 in respect of books and documents that are to be maintained by every organization that enjoy tax benefit.
This is a mandatory requirement. Failure to keep books of accounts and documents prescribed by the Rule will disqualify the organization for Tax exemption.
Rule 17AA prescribes the following registers/books to be maintained apart from regular Cash book, bank book, ledger, Journal Register, vouchers (serially numbered), Receipt Books etc.
These Books and Records require to be kept at the Registered Office of the Organization.
These books can be in manual form or in electronic mode.
These books, records require to be preserved for at least 11 years.
1. Record of all Projects of the Organization
2. Record of Income of the Organization
3. Record on details of Application of Income
4. Record on Inter Charity Donations
5. Record of application of Income outside India
6. Record of deemed application of Income u/s 11(1) explanation (2)
7. Record of accumulation of Income u/s 11(2)
8. Record of Investment of funds
9. Records relating to Corpus Donations
10. Records relating to loans and borrowings
11. Records relating to Properties
12. Records relating to transactions with ‘specified persons’