The Tax Return Preparers Scheme was introduced by the Income Tax Department because most of the people either don’t know how to file ITR or they sometimes voluntarily keeps delaying it. So according to Income Tax Department, if the taxpayers will have someone who will assist them or pay their income tax, the number of returns and payment of income tax will be increased. Tax Return Preparers are trained by Income Tax Department with help from third party companies like NIIT.

Role of Tax Return Preparers

Any person who is liable to furnish return may at his option furnish that return by preparing it through Tax Return Preparers.But the following person cannot furnish return through Tax Return Preparers:

  • If the person is carrying on a business or profession and in the relevant previous year, he is liable to get the books of accounts audit under section 44AB of the Income Tax Act or under any other law.
  • An eligible person is not resident in India during the previous year relevant to such assessment year.

Eligibility

The tax research preparer shall be a person between the age of 21 to 35 years and must be having a graduation degree in the subject of:

  1. Law
  2. Economics
  3. Statistics
  4. Mathematics
  5. Commerce
  6. Management/ Business Administration

Fees of Tax Return Preparers

Tax Return Preparers can charge maximum fees of Rs. 250 per return for filing the return of the taxpayer.

Apart from that, the incentives that are given to the Tax Research Preparers are:

  1. 3% of the tax paid on the income declared in the return of income for the First Assessment Year which has been prepared and furnished by him.
  2. 2% of the tax paid on the income declared in the return of income for the Second Eligible Assessment Year which has been prepared and furnished by him.
  3. 1% of the tax paid on the income declared in the return of income for the Third Eligible Assessment Year which has been prepared and furnished by him.

For any help on ITR Filing feel free to consult the tax experts at LegalRaasta. You can file ITR yourself via our ITR software or get CA’s help on filing income tax return. You can also use the option of Business ReturnBulk Return or Revised Return Filing.