Section 67C IT Act: Preservation and retention of information by intermediaries

Information Technology Act, 2000

Section 67C IT Act at a Glance

Section 67C IT Act requires intermediaries to preserve and retain specified information for the duration, manner and format prescribed by the Central Government. Any intermediary that intentionally or knowingly breaches Section 67C(1) IT Act faces a penalty up to ₹25 lakh.

Section 67C IT Act Bare Act Text

67C. Preservation and retention of information by intermediaries.

(1) Intermediary shall preserve and retain such information as may be specified for such duration and in such manner and format as the Central Government may prescribe.

(2) any intermediary who intentionally or knowingly contravenes the provisions of sub-section (1) shall be liable to penalty which may extend to twenty-five lakh rupees.

Amendments to this section
  • Subs. by Act 18 of 2023, s. 2 and Schedule for certain words (w.e.f. 30-11-2023).
  • Subs. by Act 10 of 2009, s. 32, for sections 66 and 67 (w.e.f. 27-10-2009).

Section 67C IT Act in Simple Words

Section 67C IT Act places a statutory duty on intermediaries to preserve specified records and sets a financial penalty for intentional or knowing breach. Under Section 67C(1) IT Act, an intermediary (a term defined in Section 2 IT Act) must preserve and retain such information as may be specified, for the duration and in the manner and format prescribed by the Central Government.

Section 67C(1) IT Act leaves four details to be specified or prescribed by the Central Government: which categories of information must be kept, how long that information must be retained, the manner of preservation, and the format in which records must be stored.

Under Section 67C(2) IT Act, any intermediary that intentionally or knowingly contravenes Section 67C(1) IT Act is liable to a penalty of up to ₹25 lakh. Liability under Section 67C(2) IT Act arises only when the contravention by the intermediary is intentional or knowing. Section 67C IT Act was enacted by substitution of Sections 66 and 67 by Act 10 of 2009 with effect from 27 October 2009, and Act 18 of 2023 substituted certain words in Section 67C IT Act with effect from 30 November 2023.

When Section 67C IT Act Applies

  • The entity subject to the duty is an intermediary under the IT Act.
  • The Central Government specifies the information to be preserved and prescribes the duration, manner and format of retention under Section 67C(1) IT Act.
  • The intermediary fails to preserve or retain the specified information as prescribed under Section 67C(1) IT Act.
  • For penalty liability under Section 67C(2) IT Act, the intermediary contravenes Section 67C(1) IT Act intentionally or knowingly.

Example of Section 67C IT Act

Kiran operates an online file hosting platform in Vijayawada that functions as an intermediary under the IT Act. Under prescriptions issued by the Central Government under Section 67C(1) IT Act, intermediaries of that class must preserve specified server log information in a prescribed format for a prescribed duration. To cut storage costs in Vijayawada, Kiran knowingly deletes those specified server logs before the prescribed duration ends. Because Kiran, as an intermediary, knowingly contravened Section 67C(1) IT Act, Kiran is liable under Section 67C(2) IT Act to a penalty of up to ₹25 lakh.

When Section 67C IT Act Does Not Apply

  • Contravention of Section 67C(1) IT Act by an intermediary that is neither intentional nor knowing, because Section 67C(2) IT Act requires intentional or knowing contravention for the penalty to apply.

FAQs on Section 67C IT Act

What is Section 67C IT Act?▼

Section 67C IT Act requires an intermediary to preserve and retain specified information for such duration and in such manner and format as the Central Government may prescribe. Under Section 67C(2) IT Act, an intermediary that intentionally or knowingly contravenes that requirement is liable to a penalty of up to ₹25 lakh.

What is the maximum penalty under Section 67C(2) IT Act?▼

Up to ₹25 lakh. Section 67C(2) IT Act makes an intermediary that intentionally or knowingly contravenes Section 67C(1) IT Act liable to a penalty extending up to ₹25 lakh.

Who decides what information an intermediary must preserve and for how long under Section 67C IT Act?▼

The Central Government. Section 67C(1) IT Act states that an intermediary must preserve and retain such information as may be specified for such duration and in such manner and format as the Central Government may prescribe.

Does an unintentional error attract the penalty under Section 67C(2) IT Act?▼

No. Section 67C(2) IT Act applies only where an intermediary intentionally or knowingly contravenes the provisions of Section 67C(1) IT Act.

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Disclaimer: This is for informational purposes only. Always consult a qualified advocate for legal advice.

Sources: Bare Act Text, Information Technology Act, 2000 ·