Section 7 IT Act: Retention of electronic records

Information Technology Act, 2000

Section 7 IT Act at a Glance

Section 7 IT Act treats legal rules requiring retention of documents, records or information for a specific period as satisfied when kept electronically, if accessibility, format accuracy and transmission detail conditions are met. Laws expressly governing electronic retention are excluded.

Section 7 IT Act Bare Act Text

7. Retention of electronic records.
(1) Where any law provides that documents, records or information shall be retained for any specific period, then, that requirement shall be deemed to have been satisfied if such documents, records or information are retained in the electronic form, if—
(a) the information contained therein remains accessible so as to be usable for a subsequent reference;
(b) the electronic record is retained in the format in which it was originally generated, sent or received or in a format which can be demonstrated to represent accurately the information originally generated, sent or received;
(c) the details which will facilitate the identification of the origin, destination, date and time of despatch or receipt of such electronic record are available in the electronic record:
Provided that this clause does not apply to any information which is automatically generated solely for the purpose of enabling an electronic record to be despatched or received.
(2) Nothing in this section shall apply to any law that expressly provides for the retention of documents, records or information in the form of electronic records.

Section 7 IT Act in Simple Words

Section 7 IT Act allows businesses, citizens and bodies to satisfy statutory record retention periods by storing documents, records or information in electronic form instead of paper, when three statutory safeguards are met. Section 7A IT Act deals with auditing electronic records. Under Section 7(1) IT Act, where any law requires documents, records or information to be retained for a specific period, that requirement is deemed satisfied, meaning the law treats it as fulfilled, if the electronic retention meets all three conditions in Section 7(1)(a) to Section 7(1)(c) IT Act.

First, under Section 7(1)(a) IT Act, the information inside the electronic record must remain accessible so that it can be used for subsequent reference. Second, under Section 7(1)(b) IT Act, the electronic record must be retained either in the format in which it was originally generated, sent or received, or in another format that can be demonstrated to represent accurately the original information. Third, under Section 7(1)(c) IT Act, details that help identify the origin, destination, date and time of despatch or receipt of the electronic record must be available in the electronic record. However, the proviso to Section 7(1)(c) IT Act limits that third condition: Section 7(1)(c) IT Act does not apply to information that is automatically generated solely to enable an electronic record to be despatched or received.

Section 7(2) IT Act sets an exclusion for laws that already have their own electronic retention rules. Nothing in Section 7 IT Act applies to any law that expressly provides for the retention of documents, records or information in the form of electronic records.

When Section 7 IT Act Applies

A law requires documents, records or information to be retained for a specific period.
The information in the electronic record remains accessible so that it is usable for subsequent reference (Section 7(1)(a) IT Act).
The electronic record is kept in the format in which it was originally generated, sent or received, or in a format that can be demonstrated to represent that original information accurately (Section 7(1)(b) IT Act).
Details helping identify the origin, destination, date and time of despatch or receipt remain available in the electronic record, excluding information automatically generated solely to enable despatch or receipt (Section 7(1)(c) IT Act and its proviso).

Example of Section 7 IT Act

A commercial law requires Zubair, a wholesale spice trader in Durg, to retain supplier invoices for 6 years, and says nothing express about electronic records. Zubair archives each electronic invoice in the format in which Zubair received it, keeps the archive searchable for future inspection, and preserves the sender, recipient, date and time of receipt inside every electronic record. Under Section 7(1) IT Act, Zubair's electronic archive satisfies the retention requirement of 6 years without paper copies. Under the proviso to Section 7(1)(c) IT Act, Zubair does not need to preserve automatic mail server routing data generated solely to transmit the invoice emails.

When Section 7 IT Act Does Not Apply

Under Section 7(2) IT Act, nothing in Section 7 IT Act applies to any law that expressly provides for the retention of documents, records or information in the form of electronic records.
Under the proviso to Section 7(1)(c) IT Act, the requirement in Section 7(1)(c) IT Act to keep origin, destination, date and time details does not apply to information automatically generated solely for enabling an electronic record to be despatched or received.

FAQs on Section 7 IT Act

What is Section 7 IT Act?▼

Section 7 IT Act states that when a law requires documents, records or information to be kept for a specific period, retaining them in electronic form satisfies that law if conditions on accessibility, format accuracy and despatch or receipt details are met. It does not apply where a law already has express provisions on retaining records in electronic form.

Must an electronic record be stored only in its original file format under Section 7 IT Act?▼

No. Under Section 7(1)(b) IT Act, the record may be retained either in the format in which it was originally generated, sent or received, or in another format that can be demonstrated to represent accurately the information originally generated, sent or received.

Do automatic transmission logs have to be retained under Section 7(1)(c) IT Act?▼

No. Under the proviso to Section 7(1)(c) IT Act, the duty to retain origin, destination, date and time details does not apply to information automatically generated solely for enabling an electronic record to be despatched or received.

Does Section 7 IT Act override another law that sets its own rules for electronic record retention?▼

No. Under Section 7(2) IT Act, nothing in Section 7 IT Act applies to a law that expressly provides for the retention of documents, records or information in the form of electronic records.

What transmission details must remain available under Section 7(1)(c) IT Act?▼

Origin, destination, date and time details. Under Section 7(1)(c) IT Act, details facilitating identification of the origin, destination, date and time of despatch or receipt must remain available in the electronic record, except data automatically generated solely to enable despatch or receipt.

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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 ·