Navigating income tax filing can be overwhelming for many in India. To ease this process, the Income Tax Department launched the Tax Return Preparer (TRP) scheme, designed to support taxpayers by training and authorizing individuals to assist in income tax return preparation and filing. This article explores what a TRP is, their duties, how to locate one, the process to use their services, their fee structure, and the qualifications needed to become a TRP.

What is a Tax Return Preparer (TRP)?

A Tax Return Preparer (TRP) is a certified individual by the Income Tax Department, tasked with assisting taxpayers in preparing and submitting their income tax returns. Contrary to chartered accountants or tax lawyers, TRPs don’t need advanced professional qualifications but undergo specific training to aid individuals and small businesses in filing taxes for a nominal charge. TRPs cannot handle cases that necessitate a tax audit.

Responsibilities of a Tax Return Preparer

TRPs have essential duties:

• Preparing Income Tax Returns: Ensure accurate preparation, including all necessary taxpayer information.
• Submission of Returns: File returns with the relevant Assessing Officer, confirming verification by the resource center.
• Acknowledgment Receipt: Obtain proof of successful return submission from the Income Tax Department.
• Monthly Statements: Send monthly particulars to the Resource Centre detailing their activities.
• Record Keeping: Maintain thorough records of all prepared tax returns, covering current and previous years.

Key Details Maintained by TRPs

TRPs must keep the following details for each tax return:

• Taxpayer's Name
• PAN (Permanent Account Number)
• Year of Assessment
• Total Income and Tax Payable
• Submission Date and Acknowledgment Number
• Jurisdiction of the Assessing Officer
• Fees Charged

How to Find a TRP

Locating a TRP can be done through these methods:

• Income Tax Website: Use the “Locate a TRP” link on the official site for contact details in your area.
• Home Visit Registration: Register for a TRP home visit via the website.
• Helpline: Call 1800-10-23738 for TRP support.
• Email: Email helpdesk@trpscheme.com for a TRP assignment.

Step-by-Step Guide to Avail TRP Services

To use a TRP, particularly for a home visit:

• Visit the TRP Scheme Website: Find options to locate TRPs by state, city, or request a home visit.
• Register for Home Visit: Click "Register for Home Visit" and provide necessary details like assistance type, preferred date/time, ensuring a TRP assists you at home.
• TRP services help in preparing TDS statements and filing returns.

TRP Fees and Commissions

TRPs can charge fees and earn commissions as follows:

• Flat Fee: Rs. 250 for preparing and filing a return.
• Commissions: Based on taxpayer's tax paid:
  • First Year: 3% of tax, up to Rs. 1000.
  • Second Year: 2% of tax, up to Rs. 1000.
  • Third Year: 1% of tax, up to Rs. 1000.

Fees may be lower based on TRP scheme terms.

Eligibility to File ITR through a TRP

Eligibility includes:

• General Taxpayers: Those filing under Section 139 of the IT Act.

TRPs cannot assist:

• Business/Profession Requiring Audits (Section 44AB)
• Non-Residents during applicable financial year
• Return filings in response to specific notices (Sections 142(1)(i), 148, or 153A)
• Filing revised returns unless the original was through a TRP

Requirements to Become a TRP

To be a TRP, candidates need:

• Educational Qualification: Bachelor's degree in Economics, Law, Mathematics, Statistics, or Commerce.
• Age Limit: Between 21 and 35 years.

Visit "Procedure to Become a TRP" on the TRP website for more info.

Conclusion

The Tax Return Preparer (TRP) scheme simplifies tax filing in India, easing the burden for taxpayers. By empowering trained individuals to aid in tax return processes, it bridges the complex tax regulations gap. Whether seeking a TRP or interested in becoming one, understanding the processes and roles involved is key to effective tax management.