The Punjab Pradesh Beopar Mandal (PPBM) has expressed serious concern over the provisions introduced by the Central Government under Income Tax Rule 46(8), which require traders and the MSME sector to maintain daily electronic ledger backup and storage.
In a communique to Finance Minister Nirmala Sitharaman, the PPBM urged the government to reconsider the provision and provide relief to small businesses and the MSME sector. The organisation sought the creation of a simple and practical compliance mechanism for small businesses to promote ease of doing business and enable them to continue contributing to the national economy without additional burden.
PPBM president Piara Lal Seth said the country’s business community has always supported transparency, digitisation and tax compliance. However, the mandatory daily backup and storage of electronic account data on Indian servers for traders with a turnover exceeding Rs 25 lakh under this provision, implemented from April 1, 2026, is proving extremely difficult and costly for small and medium-sized businesses.
He said small businesses and MSMEs often lack dedicated IT departments or the technical infrastructure required to manage complex daily processes such as data transfer, cloud storage, cybersecurity and server management. This, he added, would create unnecessary financial and administrative burdens for businesses.
PPBM general secretary Sameer Jain stated that business accounts contain highly sensitive information, including customer and supplier details, pricing structures, profit margins and business strategies. Mandatory daily transfer of complete data could increase the risk of data breaches, privacy concerns and cyber misuse, he added.
