The Ministry of Corporate Affairs (MCA), vide a notification dated 24th March, 2021 has made amendment to The Companies (Accounts) Rules, 2014, in exercise of the powers conferred by section 134 read with section 469 of Companies Act, 2013.
These new rules may be called the Companies (Accounts) Amendment Rules, 2021.
As per notification, in rule 3, sub-rule (1), the following proviso shall be inserted: –
For the Financial Year commencing from 1st April, 2021, every Company which uses accounting software for maintaining its Books of Accounts, shall use only such accounting software which has a feature of recording audit trail of each and every transaction.
Such software should create an edit log of each changes made in Books of Accounts along with the date of such change and ensuring that audit trail cannot be disabled.
The above amendment shall come into force with effect from the 1st day of April, 2021.
Source: MCA Notification
Assistant Manager, ShineWing India