Is there a prescribed time limit for which an individual needs to maintain financial reccords and tax data for previous years? Can a query be raised for a period beyond such a time limit? Reason for the question is that recently I received an intimation from CPC, Bangalore raising a demand for the AY 2001-02, for a relatively small amount of Rs 2000 odd - with no other details provided. I don't believe I have any documents for the period to contest the claim, but wish to know if there is a time limit after which claims and/ or questions cannot be raised, and documents etc can be destroyed.
Second proviso to Sec.143(1)(a) stipulates a time of one year from the end of the financial year in which the return is filed. If the intimation is in time it is valid. If there is a mistake ,you may file a rectification letter u/s.154 in E mode
the books and records are to be retained for six year from the end of the relevant asst year
6 years