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It is quite evident that India has one of the lowest numbers of ITR filers considering the large population of the country. In order to overcome this problem and make tax filing easier for Indians from all walks of life, a new scheme to facilitate submission of Income Tax Return through Tax Return Preparers has been inserted w.e.f. June 1, 2006. This new scheme provides as follows:

(1) Certain specified class or classes of persons may be allowed to furnish their returns of income through a Tax Return Preparer authorized to act as such under this scheme. Every Tax Return Preparer shall assist the persons furnishing the return of income in such a manner as may be specified in the scheme framed under this section and affix his signature to such return.

Submission of Income Tax Returns through IT return Preparers

Who is an Income Tax Return Preparer?

Tax Return Preparer' means any individual who has been authorized to act as a Tax Return Preparer under the scheme framed under this section. Specified class or classes of persons' means any person other than a company or a person whose accounts are required to be audited. An Income Tax Return Preparer has generally the following duties:

  • Preparing the income tax return of a taxpayer.
  • Submitting the prepared tax return to the relevant Assessing Officer or concerned agency verified by the resource centre.
  • Acquiring copy of the acknowledgement received from the IT department on behalf of the taxpayer. This document acts as a proof of submission of the tax return

The educational qualification required to become an  Income Tax Return Preparer must hold a bachelor's degree from a recognized university in any of the following subjects:

  • Economics (B.A. / B.Sc.)
  • Law (LLB)
  • Mathematics (B.A. / B.Sc.)
  • Statistics (B.A. / B.Sc.)
  • Commerce (B.Com.)
 

Also, the candidate's age must be between the age of 21 to 35 years

The scheme framed by the Board may provide for the following:

(i) The manner in which and the period for which the Tax Return Preparer shall be authorized.

(ii) The educational and other qualifications and training and other conditions required to be fulfilled by Tax Return Preparer.

(iii) The code of conduct for the Tax Return Preparer.

(iv) The duties and obligations of the Tax Return Preparer.

(v) The manner in which authorization may be withdrawn, etc.

Tax Return Preparers (TRPs) can charge a fee and also earn a commission for the income tax returns filed by them on behalf of the taxpayer. The flat fee charged by a TRP to annual file income tax return is Rs. 250, which is payable by the income tax assessee. The commissions earned by the TRP are payable by either the Resource Center or Partner organization as authorized by the TRP board.

 

However, a Tax Return Preparer cannot prepare tax returns of the following types of taxpayers who:

  • Carries out business or profession during the previous financial year which has to be audited according to Section 44AB of the Income Tax Act, 1961
  • The Income Tax assessee was not an India during the applicable financial year
  • Is required to file income tax return in response to a notice under Section 142(1)(i), Section 148 or Section 153A
  • Needs to file a revised income tax return unless the original return was filed through the Tax Return Preparer

You can search for an income tax return preparer near you by visiting the Tax Return Preparer Scheme (TRPS) official website. You can Locate TRPs in your area using State, City, Pincode or TRP name.You may also Register for Home Visit

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Category Income Tax, Other Articles by - Ritik Chopra 



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