Starting April 1, 2023, all companies in India, including Section 8 companies, must maintain an audit trail in their accounting software. This requirement ensures that every transaction is recorded with a time-stamped, tamper-proof edit log. Auditors must verify that the audit trail was enabled throughout the financial year, protected from tampering, and compliant with statutory retention rules. Non-compliance can result in fines between INR 50,000 and INR 500,000 for companies, directors, CFOs, and auditors. In severe cases, imprisonment or professional disqualification may occur. Companies are urged to ensure their software providers support audit trail features and to collaborate with auditors for seamless compliance, safeguarding transparency and accountability.