What Are Tax Return Preparers (TRPs) in India?

Navigating the income tax filing system in India can be challenging. To simplify the process, the Income Tax Department launched the Tax Return Preparer (TRP) scheme, designed to assist taxpayers by training individuals to help in preparing and filing income tax returns. This guide explores the role and responsibilities of a TRP, how to locate one, utilizing their services, fees involved, and the qualifications needed to become a TRP.

Understanding Tax Return Preparers (TRPs)

A Tax Return Preparer is a person accredited by the Income Tax Department to assist taxpayers in preparing and filing their returns. Unlike chartered accountants or tax attorneys, TRPs don’t require advanced professional qualifications but undergo specific training to support individuals and small businesses with tax filings at cost-effective rates. However, TRPs are limited to cases that don’t require a tax audit.

Roles and Responsibilities of TRPs

TRPs have several important obligations:

• Preparing Income Tax Returns: Ensure accurate preparation, including all necessary taxpayer details.
• Submission of Returns: File returns with the relevant Assessing Officer and verify with the resource center.
• Acknowledgment Receipt: Obtain proof of successful submission from the Income Tax Department.
• Monthly Statements: Report monthly activities to the Resource Centre.
• Record Keeping: Maintain detailed records of tax returns, including past years.

Details TRPs Must Maintain

For each tax return, TRPs need to keep the following information:

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

Locating a TRP

You can find a TRP through various methods:

• Income Tax Website
• Local Resource Centers
• Financial Advisories