The Ministry of Corporate Affairs on 24th March 2021 has published the Companies (Accounts) Amendment Rules, 2021 which shall come into force from 1st April 2021.
The Amendment is brought under rule 3(1) which specifies the Manner of books of account to be kept in electronic mode in which after sub-rule (1) the following proviso has been inserted:
That for the financial year commencing on or after the 1st day of 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, creating an edit log of each change made in books of account along with the date when such changes were made and ensuring that the audit trail cannot be disabled.
