Income Tax :- Submission of Income tax Return Through Tax Return Preparers (TRP)

Monday, September 23, 2013 | comments

Scheme for submission of returns through Tax Return Preparers [Section 139B]

(1) This section provides that, for the purpose of enabling any specified class or classes of persons to prepare and furnish their returns of income, the CBDT may notify a Scheme to provide that such persons may furnish their returns of income through a Tax Return Preparer authorised to act as such under the Scheme.

(2) The Tax Return Preparer shall assist the persons furnishing the return in a manner that will be specified in the Scheme, and shall also affix his signature on such return.

(3) A Tax Return Preparer can be an individual, other than
  1. any officer of a scheduled bank with which the assessee maintains a current account or has other regular dealings.
  2. any legal practitioner who is entitled to practice in any civil court in India.
  3. a chartered accountant.
  4. an employee of the ‘specified class or classes of persons’.
(4) The “specified class or classes of persons” for this purpose means any person other than a company or a person whose accounts are required to be audited under section 44AB (tax audit) or under any other existing law, who is required to furnish a return of income under the Act.

(5) The Scheme notified under the said section may provide for the following - 
  1. the manner in which and the period for which the Tax Return Preparers shall be authorised
  2. the educational and other qualifications to be possessed, and the training and other conditions required to be fulfilled, by a person to act as a Tax Return Preparer,
  3. the code of conduct for the Tax Return Preparers,
  4. the duties and obligations of the Tax Return Preparers,
  5. the circumstances under which the authorisation given to a Tax Return Preparer may be withdrawn, and
  6. any other relevant matter as may be specified by the Scheme.
(6) Every Scheme framed by the CBDT under this section shall be laid before each House of Parliament while it is in session to make the same effective.

(7) If both the houses decide in making any modification of Scheme, then the Scheme will have effect only in such modified form.

(8) Similarly, if both the Houses decide that any Scheme should not be framed, then such Scheme will thereafter be of no effect.

(9) However, such modification or annulment should be without prejudice to the validity of anything previously done under that scheme.

(10) Accordingly, the CBDT has, in exercise of the powers conferred by this section, framed the Tax Return Preparer Scheme, 2006, which came into force from 1.12.2006. As per this scheme, Tax Return Preparer means any individual who has been issued a Tax Return Preparer Certificate and a Unique Identification Number by the Partner Organisation to carry on the profession of preparing the returns of income in accordance with the provisions of this Scheme. However, persons referred to in clause (ii) or clause (iii) or clause (iv) of subsection

(2) of section 288, namely, any officer of a Scheduled Bank with which the assessee maintains a current account or has other regular dealings, any legal practitioner who is entitled to practice in any civil court in India and an accountant are not eligible to act as Tax Return Preparers. It may be noted that as per section 139B(3), an employee of the “specified class or classes of persons” is not authorized to act as a Tax Return Preparer. Therefore, it follows that employees of companies and persons whose accounts are required to be audited under section 44AB or any other law for the time being in force, are eligible to act as Tax Return Preparers.
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