Last updated . Rules and due dates reflect the laws and notifications in force on this date.
Every other compliance starts with the books
Your GST returns, TDS returns, income tax return, audit and bank renewals all draw on the same ledgers. If the books are late or wrong, every one of those filings is late or wrong too. Many notices begin with a mismatch that sat unnoticed in the accounts for months.
Well kept books also help you run the business. You see which customers pay late, which costs are rising and how much cash you will need next quarter, while there is still time to act.
Recording every sale, purchase, receipt and payment correctly and on time, with bank, GST and TDS reconciliations done every month.
Turning those records into financial statements and reports: accruals, provisions, depreciation, closing entries and the year-end accounts in the format the law requires.
Three principles behind our accounting work
Accuracy first
Bank, GST and TDS balances reconciled every month, so that year end is a review and not a rebuild.
Compliance built in
Audit trail, backup, MSME and statutory dues belong in the monthly routine, not left for the auditor to find.
Independence
The law does not allow a company's statutory auditor to keep its books. We take up company accounting only where we are not the statutory auditor, for example where another firm audits the company.
What changed for accounting in 2025-26
Several changes in the last twelve months affect how books are kept and how returns are prepared from them. Here is what matters for your accounts team.
New Act, new TDS sections and return forms
The new Act applies from 1 April 2026 and uses a single "tax year". TDS provisions are consolidated into Sections 392 and 393, and quarterly TDS returns move to Form 138 (salary), Form 140 (resident non-salary) and Form 144 (non-residents). Books for income tax are now required under Section 62, which replaces Section 44AA.
For you: TDS ledgers and software masters need the new section and payment codes for 2026-27. FY 2025-26 accounts and returns still follow the 1961 Act.
GSTR-3B locked, returns time-barred after three years
From the July 2025 tax period, outward tax in Table 3 of GSTR-3B that is auto-filled from GSTR-1, GSTR-1A or IFF can no longer be edited. From 1 August 2025, returns cannot be filed once three years have passed from their due date. New rates of 5%, 18% and 40% have applied since 22 September 2025.
For you: sales must be right in GSTR-1 the first time, or corrected through GSTR-1A before GSTR-3B is filed. Item masters must carry the current rates.
More companies now count as "small"
By notification G.S.R. 880(E) dated 1 December 2025, a private company with paid-up capital up to ₹10 crore and turnover up to ₹100 crore can qualify as a small company, up from ₹4 crore and ₹40 crore. Under Section 2(40), a small company's financial statements need not include a cash flow statement.
For you: check your status before finalising FY 2025-26 accounts. Holding, subsidiary and Section 8 companies cannot be small companies.
Profession tax dates moved to the 15th
An amendment to Rule 11(3) of the Maharashtra profession tax rules, notified on 28 February 2026, replaced the "last date" of the month with the 15th. Annual returns move from 31 March to 15 March, and the PTEC payment date from 30 June to 15 June.
For you: employers who paid profession tax at month end now have about two weeks less. Update your payroll calendar.
Our accounting services
Outsourced Accounting
Section 128, Companies Act, 2013 · Rule 3, Companies (Accounts) Rules, 2014 · Section 35, CGST Act, 2017
We assist with month-by-month bookkeeping and accounting. We work on TallyPrime, Zoho Books, Busy and other commonly used accounting software, including setup, migration and chart of accounts design. For companies, the books must be kept on the accrual basis and the double entry system, and must give a true and fair view. Firms, LLPs and proprietors benefit from the same discipline.
- Recording of sales, purchases, expenses, receipts and payments from your source documents
- Reconciliations of bank and cash, vendor and customer ledgers (with balance confirmations), GST input credit (GSTR-2B), TDS (Form 26AS / AIS), and inter-company and loan accounts
- Accounts payable management: invoice processing, payment scheduling and creditor ageing
- Accounts receivable management: invoicing support, collection tracking and debtor ageing
- Payroll entries, PF, ESI and profession tax workings
- Fixed asset register and depreciation
- A check that audit trail is on and that daily backups are held on servers in India
Expert note: if you use Tally, the standard TallyPrime release lets an administrator switch the edit log off. The TallyPrime Edit Log release keeps it on permanently. For a company, even a short period with logging off leads to a remark in the audit report, so check this setting at the start of every year.
Management Reporting (MIS)
Monthly or quarterly reports for owners, boards and lenders
Statutory accounts come once a year. Decisions happen every week. A short, regular MIS pack tells you how the business is doing, where the cash is going and what needs attention, in a format that stays the same from month to month.
- Profit and loss against budget and against the same period last year
- Cash and bank position, with a simple forecast for the next few months
- Receivable and payable ageing, and working capital days
- Product, customer, branch or project profitability where the data allows
- Statutory dues paid and payable: GST, TDS, PF, ESI and profession tax
- Stock and debtor statements for your bank, tied back to the books
Expert note: tag each supplier as micro, small, medium or not registered in the payables report. Under Section 43B(h), dues to micro and small enterprises paid after 45 days (15 days without a written agreement) are allowed only when paid. Medium enterprises and traders are outside the rule, so a correct tag avoids both missed and wrong disallowances.
Account Finalisation & Review
Section 129 and Schedule III, Companies Act, 2013 · Accounting Standards / Ind AS
We assist with closing the year and preparing financial statements that are ready for audit: balance sheet, profit and loss, notes and, where required, the cash flow statement. For companies we follow the Schedule III format, including the ageing schedules, promoter shareholding and ratio disclosures added from 1 April 2021.
- Year-end accruals, provisions, prepaid expenses and closing stock entries
- Schedule III financial statements under AS or Ind AS, as applicable
- Trade receivable and trade payable ageing, and MSME dues disclosure
- Related party lists and transaction summaries for the auditor
- Tax computation support and a reconciliation of the books with GST and TDS returns
- An audit-ready file with schedules for every balance, shared with your auditor
Expert note: Ind AS becomes mandatory once an unlisted company's net worth reaches ₹250 crore, and it also covers that company's holding, subsidiary, joint venture and associate companies. Once it applies, it continues even if net worth later falls, so a group crossing the limit should plan the move a year ahead.
Virtual Office / Compliance Support
CGST Act, 2017 · Income-tax Act, 1961 and 2025 · EPF and ESI Acts · Maharashtra profession tax law
For businesses without a full-time accounts department, we can act as your back office: bookkeeping, preparation of payments and returns, and a structured monthly compliance calendar that keeps deadlines on track. These are the main monthly dates.
- 7th: TDS and TCS deducted or collected in the previous month deposited (for March, by 30 April)
- 11th: GSTR-1 for monthly filers. 13th: IFF, or GSTR-1 after the quarter, for QRMP filers
- 15th: PF and ESI contributions for the previous month, and Maharashtra profession tax (PTRC) under the revised dates
- 20th: GSTR-3B for monthly filers. 22nd: GSTR-3B after the quarter for QRMP filers in Maharashtra
- 25th: GST payment in PMT-06 for the first two months of a quarter, for QRMP filers
- 15 June, 15 September, 15 December, 15 March: advance tax, cumulatively 15%, 45%, 75% and 100% of the year's tax
Expert note: for companies, dues to micro and small suppliers outstanding beyond 45 days must be reported in MSME Form 1 every half year, by 31 October for April to September and by 30 April for October to March. Drawing it from the same payables data used for the MIS keeps the numbers consistent.
Other accounting support
Accounting process review and automation
What the law requires of your books
A quick guide to the main record-keeping and reporting rules. Which ones apply depends on your entity and size.
| Who | Requirement | What it means | Law |
|---|---|---|---|
| Every company | Books of account | Accrual basis, double entry, kept at the registered office (or another place in India notified to the ROC within 7 days), preserved for 8 financial years | Companies Act, s.128 |
| Companies using accounting software | Audit trail | Edit log of every change with the date, which cannot be disabled, from FY 2023-24 | Accounts Rules, Rule 3(1) |
| Companies keeping books electronically | India backup | Books accessible in India at all times, with a daily backup on servers physically in India | Accounts Rules, Rule 3 |
| Listed companies, unlisted companies with net worth ₹250 crore+, and their group companies | Ind AS | Financial statements under Ind AS and Schedule III, Division II. SME exchange listed companies are excluded | Ind AS Rules, 2015, Rule 4 |
| Other companies | AS | Financial statements under the Accounting Standards and Schedule III, Division I | Companies (AS) Rules, 2021 |
| OPCs, small companies, dormant companies, startup private companies | No cash flow | The financial statements may leave out the cash flow statement | Companies Act, s.2(40) |
| Specified professionals, and businesses above the income or turnover limits | Books for tax | Books and documents as prescribed, so that income can be computed | s.44AA (1961) / s.62 (2025) |
| GST registered persons | GST records | Accounts at the principal place of business, kept for 72 months from the annual return due date | CGST Act, s.35 & s.36 |
| Companies buying from micro and small enterprises | MSME Form 1 | Half-yearly return of dues outstanding for more than 45 days | Companies Act, s.405 |
This is a summary for general guidance. Exact applicability depends on your entity's figures and the notifications in force. Share your last audited accounts and we will confirm what applies to you.
Key dates, October 2026 to April 2027
For businesses with a 31 March year end. The government sometimes extends dates, but only an official notification counts, so plan for the dates below.
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30 Sep 2026
Tax audit report for FY 2025-26 (non-transfer pricing cases) and the last date for company AGMs. No extension had been notified as of the date of this page.
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7 Oct 2026
TDS and TCS for September deposited.
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11 to 13 Oct 2026
GSTR-1 for September (monthly filers, 11th) and for July to September (QRMP filers, 13th).
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15 Oct 2026
PF and ESI contributions for September.
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20 to 22 Oct 2026
GSTR-3B for September (monthly filers, 20th) and for July to September (QRMP filers in Maharashtra, 22nd).
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31 Oct 2026
MSME Form 1 for April to September 2026, quarterly TDS returns for July to September in the new Forms 138, 140 and 144, and the income tax return for audited cases of FY 2025-26.
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15 Dec 2026
Third advance tax instalment, 75% of the estimated tax for tax year 2026-27.
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15 Mar 2027
Final advance tax instalment (100%), and the annual profession tax return for Maharashtra employers on annual periodicity.
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30 Apr 2027
TDS for March 2027 deposited (non-government deductors) and MSME Form 1 for October 2026 to March 2027.
How we work
A simple monthly routine, agreed at the start, so that everyone knows what is needed and when.
Understand the business
We learn how you sell, buy and pay, which registrations you hold and what your auditor and bank expect from the books.
Set up or review the system
Chart of accounts, GST and TDS masters, audit trail and backup settings, and user access in your software.
Agree a document routine
A regular schedule for sharing invoices, bank statements and payroll data, so records reach the books on time.
Record and reconcile
Entries are posted and then tied to the bank, GSTR-2B and Form 26AS, with open items listed for your team.
File and pay on time
Payments and returns follow a structured monthly compliance calendar, with workings shared for your approval before filing.
Report and close
A monthly MIS pack, a review call where needed, and an audit-ready file at year end.
Checks at every month end
A good month-end close looks for entries in suspense, bank lines not matched, input credit in the books but not in GSTR-2B, TDS deducted but not deposited, supplier dues past 45 days and any change to audit trail settings. Small issues fixed monthly never become year-end problems.
Common bookkeeping mistakes
These are common in books that are not reviewed regularly. Each one is cheap to fix during the year and costly after it.
Audit trail switched off
An old software version, or an edit log turned off for part of the year, leads to a remark in the company's audit report.
Books only on one laptop
No daily backup, or a backup held only outside India, breaks Rule 3 for a company and risks losing years of records.
MSME dues past 45 days
Late payments to micro and small suppliers push the deduction to the year of payment and must be reported in MSME Form 1.
Sales booked after GSTR-1
With GSTR-3B Table 3 now locked to GSTR-1, invoices missed or wrongly reported must go through GSTR-1A, or the error carries into the return.
Input credit not in GSTR-2B
Credit taken in the books without matching the supplier's filing is a frequent source of GST notices and reversals.
Cash payments over the limit
Cash expense payments above ₹10,000 to one party in a day are disallowed for income tax. They are best flagged as they are entered.
Documents we need
To take over your books, we usually start with the following. We will send a tailored list after the first call.
- Last audited financial statements, trial balance and accounting data backup
- Bank statements for all accounts, including loan and overdraft accounts
- Sales and purchase invoices, credit and debit notes, and expense bills
- GST registration details, GSTR-1, GSTR-3B and GSTR-2B for the current year
- TAN details, TDS challans, TDS returns and Form 26AS / AIS
- Payroll data, PF, ESI and profession tax registrations and challans
- Fixed asset register and invoices for additions
- Loan agreements, sanction letters and stock statements filed with the bank
- Udyam status of your main suppliers, for MSME tracking
- Export and import documents (shipping bills, bills of entry) where applicable
Why clients trust us with their books
- Founder-led. CA Sejal Patel, Founder & Proprietor, brings 10+ years in audit, taxation, GST and advisory, with direct founder involvement and accessibility on every engagement, so you are never passed around.
- An experienced team. Supported by CA Bhoomi, Audit and Compliance Lead, and a team of 10+ experienced professionals working under direct founder supervision.
- Deadlines on track. Structured monthly compliance calendars and disciplined documentation processes keep deadlines on track.
- Honest about independence. We tell you upfront where the law does not allow us to keep your books and audit them too.
- GST refunds for exporters. A proven track record in GST refunds for exporters and import-side internal control reviews.
- Confidential. Your data is handled under the confidentiality duties of the ICAI Code of Ethics.
Frequently asked questions
What is the difference between bookkeeping and accounting?
Bookkeeping is recording every sale, purchase, receipt and payment correctly and on time, and reconciling the ledgers with the bank, GST and TDS records. Accounting builds on those records: accruals, provisions, depreciation and closing entries, and then financial statements and reports in the format the law requires. Bookkeeping is the base; accounting turns it into information for owners, auditors, lenders and the tax department.
How often should our books be updated?
At least monthly. TDS for a month is deposited by the 7th of the next month, and monthly filers file GSTR-1 by the 11th and GSTR-3B by the 20th, so a month's books need to be complete early in the following month. Businesses with a high volume of invoices, payments or stock movement do better with weekly or even daily entry, which keeps cash, receivables and input credit up to date.
Can our statutory auditor also maintain our books?
No, not for a company. Section 144 of the Companies Act, 2013 bars a company's statutory auditor from providing accounting and bookkeeping services to the company, its holding company or its subsidiary, directly or through associated entities. We therefore take up accounting for companies where we are not the statutory auditor, for example where another firm conducts the audit. ICAI's guidelines also bar the person who maintains your accounts from signing your tax audit report.
Can a company keep its books on the cloud or on a server outside India?
Yes, books can be kept in electronic form, including on the cloud. But under Rule 3 of the Companies (Accounts) Rules, 2014 they must remain accessible in India at all times, and since 5 August 2022 a backup must be kept every day on servers physically located in India, even if the main server is abroad. Details of the service provider and server location must be given to the Registrar every year.
How long must we keep our books of account?
A company must keep its books and vouchers for at least eight financial years under Section 128(5) of the Companies Act, 2013. Under GST, accounts must be kept until 72 months from the due date of the annual return for that year, and longer if an appeal or investigation is pending. The audit trail must be preserved for the same period as the books.
What is the audit trail requirement, and does Tally meet it?
From 1 April 2023, every company using accounting software must use software that records an edit log of each change, with the date, and the audit trail cannot be disabled. In Tally, the TallyPrime Edit Log release keeps the log permanently on. In the standard TallyPrime release an administrator can switch the edit log off, so companies should use the Edit Log release or confirm that logging has stayed on all year.
Which accounting software should we use?
It depends on your size, whether you hold inventory, how you handle GST and e-invoicing, and who needs access. TallyPrime, Zoho Books and Busy are common choices in India, and each suits different needs. Check inventory and batch tracking if you hold stock, GST return and e-invoice integration (e-invoicing applies once aggregate turnover in any year from 2017-18 has exceeded ₹5 crore), multi-user or cloud access and, for a company, an audit trail (edit log) that cannot be disabled, as Rule 3(1) of the Companies (Accounts) Rules, 2014 requires. The right choice is the one that fits how your business runs.
Does our company need to follow Ind AS?
Ind AS is mandatory for companies whose securities are listed or in the process of being listed (other than on SME exchanges), for unlisted companies with net worth of ₹250 crore or more, and for their holding, subsidiary, joint venture and associate companies. Other companies follow the Accounting Standards (AS). Once Ind AS applies, it continues even if net worth later falls below the limit.
What is the 45-day rule for payments to MSMEs?
Under Section 43B(h) of the Income-tax Act, 1961, amounts owed to micro and small enterprises are allowed as a deduction only in the year of payment if you pay later than the MSMED Act limit: 15 days without a written agreement, or the agreed date but not more than 45 days. Medium enterprises and traders are not covered. Companies must also report dues to micro and small suppliers outstanding beyond 45 days in MSME Form 1 every half year.
What are the advance tax due dates?
If your tax for the year after TDS and TCS is ₹10,000 or more, advance tax is paid in instalments: at least 15% by 15 June, 45% by 15 September, 75% by 15 December and 100% by 15 March. Presumptive taxpayers under Sections 44AD and 44ADA may pay the whole amount by 15 March. The schedule is the same for tax year 2026-27 under the Income-tax Act, 2025.
We are a proprietorship, not a company. Do these rules apply to us?
The Companies Act rules on books, audit trail and Schedule III apply only to companies. A proprietorship or partnership firm must still keep books under the Income-tax Act if it is in a specified profession or crosses the income or turnover limits (Section 44AA of the 1961 Act, Section 62 of the 2025 Act), and every GST registered business must keep accounts at its principal place of business under Section 35 of the CGST Act.
What does a monthly MIS pack include?
A typical pack has a profit and loss statement against budget and last year, cash and bank position, debtor and creditor ageing, working capital days, GST and TDS paid and payable, and a short note on what changed. The format is best agreed in the first month and kept the same, so that trends are easy to read.
This page is general information for businesses and is not professional advice for any specific situation. Laws, thresholds and due dates change through notifications and circulars. Please consult us before acting on it.