How to Become an Income Tax Return Preparer

An Income Tax return preparer is a professional approved by the Income Tax Department to assist taxpayers in filing income tax returns efficiently. This role is mainly for individual taxpayers and Hindu Undivided Family (HUF) assessees who do not require a tax audit. Corporate assessees, those with business income, or those mandated for a tax audit should not utilize these services. The Income Tax Department has a dedicated scheme, designating certain individuals as Income Tax Return Preparers to help taxpayers. This service is typically available to individual taxpayers not needing a tax audit.

Tax Return Preparers (TRPs) are authorized to prepare and file returns for individuals outlined under Section 139 of the Income Tax Act. However, TRPs cannot prepare the returns of individuals or entities who need an audit under Section 44AB or are non-residents of India during the financial year. For more details on tax eligibility, refer to our comprehensive guide on who should file income tax returns.

Tax Return Preparer Scheme (TRPS)

The Tax Return Preparer Scheme (TRPS) simplifies and makes the tax filing process more accessible to taxpayers by employing certified professionals trained by the Income Tax Department. This service delivers convenience right to the taxpayer’s doorstep, as detailed in our hassle-free professional tax filing guide.

Objectives of the Scheme

The Income Tax Department initiated TRPS with several goals:

Providing employment to unemployed or underemployed graduates in India.
Reducing compliance costs for small taxpayers.
Increasing the taxpayer base.
Raising awareness about tax laws among citizens.
Encouraging community participation.

Tax Return Preparer (TRP)

A TRP is a trained professional who assists taxpayers with return filing from the comfort of their homes. Notably, our complete guide on income tax return filing for individuals outlines scenarios where TRPs cannot file returns, such as in cases requiring a tax audit.

Eligibility for Becoming Income Tax Return Preparer

Individuals with a graduate degree in Business Administration, Management, Commerce, Economics, Law, Mathematics, or Statistics from a recognized Indian university can become a TRP. Candidates must also complete specific training and certification. Enrollments are announced at regular intervals, continuing detailed information is accessible on how to file income tax returns.

Who Can File Income Tax Return through Income Tax Return Preparer

Generally, individuals can utilize TRPs unless they are required to undergo an audit or respond to specific notices like under Section 142(1)(i), 148, or 153A. Revised returns are also excluded unless originally filed through a TRP. For further insights, see our easy income tax filing guide.

Duties of Income Tax Return Preparer

TRPs must execute the following responsibilities:

Ensure diligence in return preparation.
Sign the prepared returns as confirmation.
Submit returns to the relevant Assessing Officer or authorized agency.
Acquire acknowledgment copies as proof of submission.
Maintain detailed records of all returns prepared.
Submit a monthly statement of particulars to the Resource Centre.

The records should include the taxpayer's name, PAN, the assessment year, submission date, acknowledgment number, jurisdiction, total income, tax payable, and any compensation due under the scheme. For comprehensive details, explore our dedicated resources on tax filing intricacies.

Fee for Income Tax Return Preparer

TRPs earn a commission based on a percentage of the tax paid, reducing annually for the first three years. Further, they receive a fixed amount from the fourth year onward. Need specific costs? Visit our fees page for partnership tax return filings.

Avail Services of a TRP

The procedure involves registering on the official TRPS website:

Visit the official website for TRPS.
Select "Register for Home Visit".
Complete the required fields for assistance specifications and schedule.
Solve the captcha and submit the form.
Confirm the appointment arranged via phone.

Appointments can also be fixed through the or by reaching their helpline. For more specifics, you may review our pricing details on professional tax filing services.

Signing up to be a TRP

Prospective TRPs can follow these registration steps:

Monitor Scheme announcements in newspapers or online.
Submit applications via official websites or designated centers.
Attach necessary payment details, such as a demand draft.
Attend training and assessment programs post-selection.
Access free but non-reimbursed training resources.

The successful completion of these steps certifies candidates as Tax Return Preparers, adding more detailed resources are available through our compliance guide for partnership firms.

Charges of a TRP

Primarily funded by the Income Tax Department, TRPs usually charge minimal fees, calculated as a percentage of taxes filed. Discover how our services help you navigate the nuances of tax return preparer charges through our thorough company tax return filing guide.

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Frequently Asked Questions

Common questions about Income Tax Return Preparer.

An Income Tax Return Preparer is a professional certified by the Income Tax Department to assist individual taxpayers in filing their income tax returns. TRPs undergo specialized training to correctly prepare and submit returns, helping taxpayers comply with tax regulations efficiently.

Individual taxpayers whose income is not from business or profession requiring a tax audit can utilize the services of an Income Tax Return Preparer. However, TRPs are not authorized to file returns for non-resident individuals, corporates, or those mandated to get their accounts audited.

The key objectives of the TRPS include providing employment opportunities, reducing compliance costs for small taxpayers, increasing the taxpayer base, creating tax law awareness among citizens, and encouraging community participation in tax compliance.

To become a TRP, an individual must hold a graduate degree from a recognized Indian university in fields like Business Administration, Commerce, Economics, Law, Mathematics, or Statistics. Additionally, they must complete the requisite training and certification provided by the Income Tax Department.

Taxpayers can visit the official TRPS website and register for a home visit, where a TRP will assist them in preparing their returns. Alternatively, they can call the helpline or send an email to book an appointment with a TRP in their city.

TRPs receive a commission based on the tax paid by the assessee they assist. For the first year, they receive 3% of the tax paid (up to Rs. 1000); for the second year, 2% (up to Rs. 1000); and for the third year, 1% (up to Rs. 1000). From the fourth year onwards, they receive a flat fee of Rs. 250 per return.

The primary duties of a TRP include preparing tax returns with due diligence, signing the returns, submitting them to the concerned authority, maintaining records of returns prepared, and providing monthly statements to the Resource Centre.

The Income Tax Department announces the TRPS periodically, typically once every two years. Interested candidates can apply through the official website or designated NIIT centers during the announcement period, following the prescribed application process and paying the required fees.

Selected candidates undergo a rigorous training program conducted by the Income Tax Department, comprising web-based and classroom-based sessions. They are provided with study materials and must pass an assessment examination to receive certification as a TRP.

TRPs can file revised returns for taxpayers only if the original return was filed through a TRP. They are not authorized to file revised returns for taxpayers who initially filed their returns independently or through other means.