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MCA made mandatory use of Accounting Software having Audit Trail

The Ministry of Corporate Affairs has amended Rule 3 and 8 of the Companies (Accounts) Rules 2014 on 25th March 2021. 

From FY commencing on 01.04.2021, every Company shall use Accounting Software having a feature to record an audit trail of each transaction, creating the edit log of changes made & ensuring that the audit trail cannot be disabled.

The MCA added,” From the Financial Year commencing on or after 1st April 2021, every company which uses accounting software for maintaining its books of account shall use only such accounting software which has a feature of recording audit trail of each and every transaction.”

MCA also added clause xi in Rule 8, ” the details of an application made or any proceeding pending under the Insolvency and Bankruptcy  Code 2016 during the year along with their status as at the end of the Financial Year.”

in clause (xii) the details of the difference between the amount of the Valuation done at the time of one-time settlement and the valuation done while taking a loan from the Bank or Financial Institutions along with the reasons thereof. 

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Taxclue is an online news portal for reporting all news, articles, judgments, Circulars, orders, and notifications relating to various corporate and tax laws in India. We use the tagline ‘Simplifying Laws’. Our mission is to Simplify the Laws and make people aware of their rights and duties in relation to tax matters in order to equip them to participate in nation-building. TaxClue is a team of young professionals. We started in December 2016 with the mission of knowledge sharing. TaxClue would like to hear your valuable suggestion. Please write to our editorial team at info@taxclue.in

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