We are frequently asked for advice on how long to keep particular records. There are a variety of potential tax and legal issues that could arise from discarding records that should be retained. Keeping reports for an extended period consumes space and money. But for how long should the business keep its records? The response varies based on the kind of files and company policies. In general, records must be retained for as long as they are necessary or until all legal and regulatory requirements are satisfied.

Government departments have long placed a high priority on records management because effective records management is thought to be essential to effective administration. The National Archives of India and the Department of Administration Reforms Document Retention Policy India & Public Grievances are equally responsible for formulating the rules for the creation of the Records Retention Guidelines 2022 in terms of record management.

General Rule for Specific Documents

Original records should be kept for at least 9 years, according to the majority of attorneys, accountants, and bookkeeping services. Generally speaking, 9 years is enough time to defend against tax audits, legal actions, and potential claims.

• Records supporting your business tax returns must be kept up to date until the IRS is unable to audit them any longer.
• It is required to keep payroll tax records for at least 7 years following the day the taxes were due or the date you paid them, whichever comes later. These records include time sheets, earnings, pension payments, tax deposits, benefits, and tips.
• After an employee departs is fired, or retires, current employee files should be kept for at least 9 years.
• Even if the applicant wasn't hired, you must keep their information for at least three years.
• Ownership Records, including firm formation papers, minutes from annual meetings, bylaws, stock ledgers, and real estate deeds, ought to be kept forever.
• Records for accounting services should be kept for at least 9 years.
• Operational Records, which include check stubs, credit card statements, bank account statements, cancelled checks, and cash receipts, adhere to the 9-year guideline.

The aforementioned are a few recommendations for document storage. Businesses should design their data archiving policies with government-curated policies in mind; this will assist in determining how long the documents need to be maintained.