What is TRP Scheme?
To assist small and medium taxpayers in preparation of their return of income and other income tax related issues, the Government of India has designed the Tax Return Preparer Scheme (TRP Scheme). Under the TRP Scheme, the Government of India authorizes tax professionals called as the Tax Return Prepares (TRPs). The Scheme is managed by the Income Tax Department. The Tax Return Preparer Scheme (TRPS) was launched by the Government during the year 2006-07 to train unemployed and partially employed graduates from select disciplines such as, Law, Economics, Statistics, Mathematics, Commerce and Management/Business Administration.
What is the objective of TRP Scheme?
The objective of TRP Scheme is to reduce the cost of compliance for taxpayers and encourage them to comply with tax laws.
The scheme also aims to create awareness about the tax laws amongst small and marginal taxpayers and to encourage community participation to improve awareness and increase compliance.
The scheme also provides self-employment opportunities to unemployed graduates who would assist the taxpayers in preparing and filing their tax returns.
Who can act as a TRP?
Candidates between the age of twenty-one (21) and thirty-five (35) years of age who are having a bachelor's degree from a recognized university in Law/Economics/Statistics/ Mathematics/Commerce/Management Business Administration can apply for qualifying as a TRP.
The Income Tax Department periodically conducts the examination for TRPs. Candidates who undergo the prescribed training and who successfully clear the examination are authorized to act as TRPs.
Who can avail the service of TRP?
Any Individual/Hindu Undivided Family (HUF), who is resident in India and whose accounts are not required to be audited under section 44AB of the Income-tax Act, 1961, or under any other law for the time being in force can furnish his Income Tax Return after getting it prepared through a TRP.
A revised return under section 139 (5) can be furnished through a TRP only if Original return was furnished through same or any other TRP.
Returns in response to notice under section 142(1)(i) or section 148 or section 153A cannot be furnished through a TRP.