Key Difference for Books of Accounts Maintenance in New Income Tax Act 2025 Rule 46 Vs Rule 6F
Based on Income-tax Rules, 1962 and the Draft Income-tax Rules, 2026 here is the comparison between the existing Rule 6F and the new Rule 46.
Comparison: Rule 6F vs. Rule 46
| Feature | Rule 6F (Income-tax Rules, 1962) | Rule 46 (Draft Income-tax Rules, 2026) |
|---|---|---|
| Governing Act Section | Maintained under Section 44AA(3) of the Income-tax Act, 1961. | Maintained under Section 62(1) of the Income-tax Act, 2025. |
| Electronic Books & Data Localization | Not explicitly detailed in the provided | Explicitly Mandated: Books maintained electronically must be accessible in India at all times. The backup server must be physically located in India and updated on a daily basis. |
| Retention Period | Typically 7 years (6 years from end of Assessment Year). | Seven Tax Years: Books and documents must be kept for seven tax years from the end of the relevant tax year. |
| Medical Profession Forms | Requires maintenance of Daily specific registers (Form 3C in old rules). | Requires maintenance of a daily case register in Form No. 25. |
| Specified Professions | Lists: Legal, medical, engineering, architectural, accountancy, technical consultancy, interior decoration, authorised representative, and film artist. | Covers the same categories. Specifically lists detailed roles for “film artist” including: dance director, editor, singer, lyricist, story writer, screen-play writer, dialogue writer, and dress designer. |
| Reopened Assessment | Books must be maintained until the assessment is completed. | Explicitly states that if an assessment is reopened (under Section 279), books must be kept until the reopened assessment is completed. |
Key Observation: The most significant change in Rule 46 is the modernization of compliance to address digital records. Sub-rule (8) introduces a strict data localization requirement, mandating that if you keep digital books, the server/backup must be physically located in India and updated daily. This is a new compliance layer not present in the text of the old Rule 6F.
Rule 46 of Draft Income Tax Rules 2026
Maintenance of books of accounts under section 62 of the Act
(1) Every person required to keep and maintain books of account and other documents under
section 62(1) of the Act shall maintain such books of account and other documents that enable
the Assessing Officer to compute his total income under the Act.
(2) Every person carrying on legal, medical, engineering or architectural profession or the
profession of accountancy or technical consultancy or interior decoration or profession of
authorised representative or film artist shall keep and maintain the books of account and other
documents specified in sub-rule (4).
(3) The provisions of sub-rule (2) shall not apply:-
(i) in relation to any tax year in the case of any person if his total gross receipts in the
profession do not exceed one lakh fifty thousand rupees in any one of the three years
immediately preceding the tax year, or,
(ii) where the profession has been newly set up in the tax year, his total gross receipts
in the profession for that year are not likely to exceed the said amount.
(4) The books of account and other documents referred to in sub-rule (2) shall be the following,
namely:—
(i) a cash book;
(ii) a journal, if the accounts are maintained according to the mercantile system of
accounting;
(iii) a ledger;
(iv) for sums equal to or exceeding two hundred and fifty rupees, copies of bills or
receipts issued by him;
(v) original bills and receipts in respect of expenditure equal to or exceeding two
hundred and fifty rupees incurred by the person and issued to him;
(vi) payment vouchers prepared and signed by the person, where the expenditure
incurred does not exceed two hundred and fifty rupees, and the cash book maintained
by the person does not contain adequate particulars in respect of such expenditure.
5) In this rule,—
(a) “authorised representative” means a person who represents any other person, on
payment of any fee or remuneration before
(i) any Tribunal or
(ii) any authority constituted or appointed by or under any law for the time being in
force,
but does not include an employee of the person so represented or a person carrying on
legal profession or a person carrying on the profession of accountancy;
(b) “cash book” means a record of all cash receipts and payments, kept and maintained
from day-to-day and giving the cash balance in hand at the end of each day or at the end of a
specified period not exceeding a month;
(c) “film artist” means any person engaged in his professional capacity in the production
of a cinematograph film whether produced by him or by any other person, as—
(i) an actor;
(ii) a cameraman;
(iii) a director, including an assistant director;
(iv) a music director, including an assistant music director;
(v) an art director, including an assistant art director;
(vi) a dance director, including an assistant dance director;
(vii) an editor;
(viii) a singer;
(ix) a lyricist;
(x) a story writer;
(xi) a screen-play writer;
(xii) a dialogue writer; and
(xiii) a dress designer.
(6) A person carrying on medical profession shall, in addition to the books of account and other
documents specified in sub-rule (4), keep and maintain the following, namely :—
(i) a daily case register in Form No. 25;
(ii) an inventory under broad heads, as on the first and the last day of the tax year,
of the stock of drugs, medicines and other consumable accessories used for the purpose
of his profession.
(7) The books of account and other documents specified in sub-rules (1), (4) and (6) other than
those relating to a tax year which has come to an end shall be kept and maintained by the person
at:-
(i) the place where he is carrying on the profession, or,
(ii) where the profession is carried on in more places than one, at the principal place of
his profession, or,
(iii) where the person keeps and maintains separate books of account in respect of each
place where the profession is carried on, such books of account and other documents
may be kept and maintained at the respective places at which the profession is carried
on.
(8) The books of account and other documents specified in sub-rules (1), (4) and (6) maintained
in electronic mode shall remain accessible in India at all times, and the back-up of such books
of account and other documents maintained in electronic mode, shall be kept in servers
physically located in India, and shall be updated on a daily basis.
(9) The books of account and other documents specified in sub-rules (1), (4) and (6) shall be
kept and maintained for a period of seven tax years from the end of the relevant tax year.
(10) Where the assessment in relation to any tax year has been reopened under section 279 of
the Act or under section 147 of the Income-tax Act, 1961, all the books of account and other
documents which were kept and maintained at the time of reopening of the assessment shall
continue to be so kept and maintained till the assessment so reopened has been completed.