De-jargoned: Tax return preparer
TRPs are appointed under the TRP scheme and they are trained to file returns for small and marginal taxpayers
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Filing of income tax return (ITR) is not exactly easy. To make the life of tax assessees easier, the income tax (I-T) department had introduced the tax return preparer (TRP) scheme in the financial year 2006-2007. Under the scheme, TRPs are appointed to assist income tax assessees to prepare and file their returns in the correct manner.
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WHO ARE TRPS?
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Instant ApplyTRPs are appointed under the TRP scheme and they are trained to file returns for small taxpayers. The TRP has to prepare income tax return of an assessee, and then has to submit it to the concerned assessing officer. The TRP has to give a copy of the tax return prepared as well as the acknowledgement of filing returns to the assessee.
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FINDING A TRP
In order to locate a TRP in your area, you have to log on to www.trpscheme.com and click on “Locate TRPs". Fill in the information asked such as state, city and PIN code. After doing this, a list of registered TRPs in your locality will be displayed along with their TRP identity, name, contact details and address.
HOW MUCH DO THEY CHARGE?
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TRPs are incentivized by the government for each income tax return that they help file. For instance, if an income tax assessee is filing her return for the first time, the TRP will get 3% of the tax paid on the income declared as an incentive from the I-T department. For subsequent second and third years of her filing, the TRP will get 2% and 1% of the tax paid, respectively, as incentives. However, if in any year the incentive calculated is less than 250, then the assessee has to pay the TRP the difference. For example, if you are filing your tax returns for first time with help of a TRP, and your tax liability is 12,000, the TRP’s incentive will be 360 (3% of 12,000). In this case you will not have to pay the TRP, as the incentive amount is more than 250 (i.e., 360). But if your tax liability in that year was 5,000, then the TRP’s incentive will be 150 (3% of 5,000). In this scenario, you will have to pay the shortfall of 100. (250-150). If the assessee has no tax liability in a year, then the entire 250 will have to be paid to the TRP. The maximum amount of incentive that a TRP can earn is 1,000 per return.
HOME SERVICE
Under the TRP scheme you can also request for the TRP to visit your home to assist you with tax filing. To avail this facility, you have to login to www.trpscheme.com, and click on the option “register for home visit". You will then have to enter details such as purpose (preparing income tax return), name, email address, contact number, and address. You will give details of the preferred date, time, alternate date and time you want the TRP to visit. You can also send an email at helpdesk@trpscheme.com or call on 1800-102-3738 for any assistance.
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Do keep in mind that if you take the help of a TRP to prepare tax returns, details of the TRP such as identification number, name and counter signature of the TRP, should be there in the ITR form.
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