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How to Delete a Company in Tally Prime (Alt+D) Guide

June 27, 20266 min readCA Rakesh Sharma

In Tally Prime, companies are stored as numbered data folders in your database directory. If you want to clean up your dashboard by deleting inactive client files, trial setups, or corrupted test companies, you must follow the correct menu paths. Because this action is permanent, taking a backup first is mandatory.

Quick Takeaway Summary

Keyboard Shortcut Path:

Alt+K (Company) > Alter > Select Company > Press Alt+D > Confirm (Yes)

Warning: This action deletes the physical company data directory from your disk. It cannot be recovered unless you have a separate backup.

Pre-Deletion Checklist

Before pressing Alt+D, complete this verification routine to prevent accidental data loss:

  1. Take a Backup: Go to Alt+Y (Data) > Backup. Save the copy to an external drive or cloud folder.
  2. Export Reports: Export final Trial Balance, Balance Sheet, and GSTR-3B filings to Excel or PDF for offline reference.
  3. Identify the Company Code: Check the 5-digit number associated with the company (e.g. `10023`). This helps you confirm which folder you are removing.

Step-by-Step Guide to Deleting the Company

Follow these keystrokes in order:

  1. Open Tally Prime on your PC.
  2. Ensure the target company you want to delete is selected and loaded as the active company.
  3. Press Alt+K (Company) on the top menu bar, or press `Alt+K` on your keyboard.
  4. Under the dropdown menu, select Alter (or press `A`).
  5. The Company Alteration screen will open, displaying the business details.
  6. Press Alt+D.
  7. Tally will prompt: Delete? Yes or No. Select Yes (or press `Y`).
  8. Tally will show a second security warning: Are you sure? Yes or No. Confirm again by selecting Yes.

How to Delete Ledgers or Stock Items in Tally

The same `Alt+D` shortcut is used to delete individual master records like ledgers or stock items.

  • For Ledgers: Go to Gateway of Tally > Alter > Ledger > Select Ledger > Press Alt+D.
  • For Stock Items: Go to Gateway of Tally > Alter > Stock Item > Select Item > Press Alt+D.
  • Constraint: Tally will not allow you to delete a ledger or stock item if it has transaction vouchers linked to it. You must first locate and delete all associated entries from the Day Book before the ledger can be removed.

Inactivation vs. Deletion

If you want to hide a company without deleting the database (complying with the MCA 8-year record retention audit rules):

Change the company name to prepend "OLD_" or "CLOSED_", or set up user permissions to restrict access to the file instead of running the permanent Alt+D deletion process.

Frequently Asked Questions

Q: Why is the Alt+D button disabled on the alteration screen?

A: Confirm that you are logged in using admin privileges. If you are logged in under an operator or auditor role with restricted permissions, Tally blocks company alterations and deletions.

Q: How do I delete Tally company folders directly from the Windows file explorer?

A: Go to your Tally data directory (e.g. C:\\TallyPrime\\Data), locate the specific 5-digit folder (e.g. 10005) corresponding to your company, and delete it. Ensure Tally is closed before trying to delete folders directly from Windows.

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C
CA Rakesh SharmaExpert Reviewer

Chartered Accountant & Accounting Automation Specialist

Last Verified: June 27, 2026
TallyPrime FY 2026-27 (v4.0+)
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