Tax Return Preparer Scheme or TRP is basically a service for the efficient filing of tax. This scheme was successfully introduced by the Income Tax Department in order to make the process of filing taxes easier and relatively simple for the taxpayer.
What is Tax Return Preparer?
The TRPS or Tax Return Preparer Scheme is a tax filing service introduced by the Income Tax Department that offers tax filing services at the taxpayer’s doorstep. The service employs certified professionals trained by the Income Tax Department to help small and marginal taxpayers with preparing and filing their tax returns free of cost or for a small fee.
Objectives of the TRPS
The Tax Return Preparer Scheme was introduced by the government to meet the following objectives:
- Provide employment for unemployed or partially employed graduates
- Decrease the compliance costs for small taxpayers
- Increase taxpayers base
- Build awareness among people regarding tax laws
- Encourage community participation
Who is a TRP?
A TRP is a Tax Return Preparer who is a professional trained by the Income Tax Department to assist taxpayers with regards to filing their returns by offering his services in the comfort of their own home. However, TRP’s will not be able to file tax returns in cases where tax audit is mandatory.
How can I make an Appointment with a TRP?
Taxpayers can fix an appointment with a TRP by visiting the TRP website (trpscheme.com). Depending on which city you reside in, you can opt to avail of the services of the relevant TRP.
Appointments can also be made by calling the helpline at 1800-10-23738 or sending a mail to firstname.lastname@example.org
What are the Charges of a TRP?
TRPs usually help taxpayers file their returns for free since they are paid directly by the Income Tax Department. Their remuneration is dependant on the amount of tax payable by you. TRPs will receive 3% of the tax paid on the returns prepared and filed for every new assessee in the first year (subject to the maximum of Rs.1,000), 2% for second year and 1% for 3rd year. From the fourth year onwards the charges are Rs 250.
Duties of a TRP
A Tax Return Preparer is obligated to perform the following duties:
- The return is to be prepared keeping due diligence in mind
- The return that has been prepared must contain his or her signature
- Submit the return to the relevant Assessing Officer or a relevant agency that has been identified by the Resource Centre
- Acquire an acknowledgment copy, which serves as proof of submission of the return
- A record of certain details is to be maintained by the TRP with regards to any returns prepared by him. These details should contain the following:
- The name of the person who the TRP has prepared returns for
- The assessee’s PAN number
- The year of the assessment
- The date the return has been submitted or furnished
- The number present on the acknowledgement slip
- The assessing officer’s jurisdiction
- The total income amount that is declared in the return
- The total tax amount that is payable
- The total amount of tax required to be paid
- Any amount with regards to any fees and charges due to the TRP as per the terms of the Scheme
- Submitting a statement of particulars to the Resource Centre on or before the 7th of each month
Procedure to Avail of the Services of a TRP
To avail of the services of a Tax Return Preparer, the taxpayer will have to follow the procedure below:
- First visit the official TRPS website
- Go to the ‘Register for Home Visit’ section. As per this initiative, the TRP will assist the taxpayer by helping them prepare their returns at their residence
- If you decided to opt for the TRP to pay you a visit at your home, you will then be required to outline the kind of assistance you need as well as a date and time for the TRP to pay a visit.
- Once this is done the help desk will identify the closest TRP available in your area and book an appointment via phone