Tax Return Preparer: Eligilibility, Process & How to locate?

The tax return preparer scheme is started by the income tax department to file tax returns efficiently and with ease. In this scheme, individuals are trained by the income tax department to assist the taxpayers with the preparation and filing of their income tax return for a nominal fee or free of cost as TRPs are paid directly by the income tax department.

Who is a tax return preparer (TRP)?

The tax return preparer is an individual authorized to assist people in filing their income tax returns. TRPs can offer their services at the doorstep of the taxpayers.

Who is eligible to become a TRP?

Individuals between the age of 21 to 35 years having a bachelor’s degree can apply for becoming a TRP. Such a degree must be obtained from a recognized university in the following domains

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

What is the process to become a TRP?

The scheme is announced by the income tax department at regular intervals (Approximately, once in two years). Once the scheme is announced, an application form can be filled up online from TRPS official website or designated NIIT centers.The Application forms would also be published in newspapers which can be filled up by the candidates making the following compliances

• Enclose a demand draft of Rs. 100 in favor of "NIIT Limited-TRPSCHEME" A/c. along with the application form.
• Training of 5,000 candidates will be carried out at 120 centers across the country.
• The selection of the candidates for the training of TRP shall be made for each centre separately.
• A maximum of 500 candidates per centre shall be shortlisted out of the applications received on the basis of the marks obtained in the bachelor’s degree.
• The shortlisted candidates should appear for an enrolment test.
• An applicant is allowed to apply for 3 centers, clearly mentioning the centre preferences in the application form.
• In case a candidate is shortlisted at more than one training center for the enrolment test, he would be allotted the training center according to his order of preference.
• The result of the enrolment test shall be posted on the website.
• Successful candidates will make a security deposit of Rs. 1000 with NIIT. This deposit will be refunded only on successful completion of training of the candidate
• The study material will be provided to successful candidates for training, including a web-based and classroom-based training program.
• After the training program, the candidates will go through an examination and will be certified as 'Tax Return Preparers'. They will also get subsequent help through a web-based Knowledge Portal and help desk to file returns of the taxpayers.

The scheme only offers free training to the candidates shortlisted. Expenditure on stay and transportation has to be made by the candidates themselves.

What are the duties of a tax return preparer?

Coming up next are the obligations that ought to be executed by a Tax Return Preparer.

• Preparation of the income tax return for individual and HUF taxpayers
• Signing such prepared return
• Submission of the ITR
• Obtain a copy of acknowledgment on behalf of the taxpayer
• Submission of statement of particulars to the resource center on or before 7th of each month
• Maintain records of all tax returns prepared by them during the current as well as the previous year

What is the objective of this scheme?

The income tax department launched this scheme with the following objective

• To provide employment to unemployed persons.
• With a view of reducing the compliance cost
• Make an effort to increase taxpayers base
• Aware people about tax laws

How to locate TRPs?

There are two ways of finding the TRP near you

• Through income tax website
• Through TRPS website

• Step 1: Visit the official website and click on 'Taxpayer Services' button
• Step 2: Go to “locate tax return preparer” tab and click on “link to relevant website”
• Step 3: Enter Pincode or Address and then click on the search button. Click on “Register for return preparation” and then it shows a list of Tax return preparers in your area.
• Step:4 Select one TRP of your choice by clicking on “Register for return preparation” and fill the details or you can also call them.
• Step:5 Fill all details and click on the “submit” button. You can also know the details about fees by clicking on the “Click Here” button.

• Step 1: Visit TRPS official website and click on “Register for home visit”.
• Step 2: Fill the necessary details and click on the declaration and then submit the same for further process.

What are the charges of TRPs?

TRPs are directly paid by the income tax department so they usually help taxpayers to file their income tax returns for free. The payment is normally made as a predefined percentage of tax paid on the Income-tax return prepared in the following ratio

• 3% in the first year
• 2% in the second year,
• 1% for the third year and
• Rs. 250 from the fourth year onwards

The maximum payment in any of the above cases shall not exceed Rs 1,000/-.

Who can file an income tax return through the TRPs?

Individuals and HUFs can file an income tax return using the services of TRPs. But TRPs cannot prepare and file an income tax return if:

• The individual taxpayer who is carrying out business or profession during the previous year and accounts of the business or profession for that previous year are required to be audited under the Income Tax Act 1961.
• The Individual taxpayer is a non-resident during the previous year.
• The individual taxpayer is required to file an income tax return in response to a notice under Section 142(1)(i) or Section 148 or Section 153A.
• TRPs cannot file a revised income tax return unless the taxpayer filed the original return through a TRP.

What are the records TRPs are required to maintain?

• The name of the person whom the TRP has prepared the returns for.
• The PAN of the Assessee
• The year of the assessment
• The date when the return has been submitted.
• The number demonstrated on the acknowledgment slip.
• The jurisdiction of the assessing officer.
• The total income declared in the return.
• The total tax amount which is payable by the assessee.

Frequently Asked Questions (FAQs)

Q - I got my original return filed from TRP is it mandatory to file the revised return from TRP only?

Yes, in case the original return was filed with TRP, the revised return can only be filed with the help of a Tax Return Preparer.

Q - Is the return filed from TRP valid?

Yes, an ITR filed with TRP is valid the same as filed from any other source.

Q - Can audit be done by a TRP?

No, TRPs are not allowed to conduct an audit.