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Submission of IT Returns through Tax Return Preparers (Section 139B)

  1. Tax Return Prepare Scheme 2006

  2. Incentive to the Tax Return Preparer under Tax Return Prepare Scheme 2006

Section 139B provides as follows—

  • For the purpose of enabling any specified class or classes of persons to prepare and furnish returns of income, the Board has framed a scheme providing that such persons may furnish their returns of income through a Tax Return Preparer authorised to act as such under the scheme.

  • The Scheme specifies the manner in which the Tax Return Preparer shall assist the persons furnishing the return of income, and shall also affix his signature on such return.

  • A Tax Return Preparer may be an individual other than a person referred to in section 288(2)(ii)/(iv) or an employee of the specified class or classes of persons, who has been authorised to act as a Tax Return Preparer under the above scheme.

  • The above scheme also provides the manner in which a Tax Return Preparer shall be authorised, 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, the code of conduct for the Tax Return Preparer, the duties and obligations of the Tax Return Preparer, the manner in which the authorisation may be withdrawn, and any other matter which is required to be or may be specified.

1. Tax Return Prepare Scheme 2006

(A). Education Qualification for Tax Return Preparer:

Any individual who holds a graduation degree from a recognized Indian University in the fields of Business Administration or Management or Commerce or Economics or Law or Mathematics or Statistics shall be eligible to act as Tax Return Preparer.

(B) Preparation of and Furnishing the Return of Income by the Tax Return Preparer:

  1. An eligible person may, at his option, furnish his return of income under section 139 of the Act for any assessment year after getting it prepared through a Tax Return Preparer.
  2. However, the return of income for an assessment year shall not be prepared and furnished through a Tax Return Preparer, if—

    1. an eligible person is carrying out business or profession during the previous year relevant to such assessment year and accounts of the business or profession for that previous year are required to be audited under section 44AB of the Act or under any other law for the time being in force; or

    2. eligible person is not resident in India during the previous year relevant to such assessment year.

    An eligible person shall not furnish a revised return of income under section 139(5) of the Act for any assessment year through a Tax Return Preparer unless he has furnished the original return of income for that assessment year through such or any other Tax Return Preparer.

    Further, a return of income which is required to be furnished in response to a notice under section 142(1)(i) or section 148 or section 153A of the Act shall not be prepared and furnished through a Tax Return Preparer.

  3. The Tax Return Preparer shall prepare and furnish the return of income to the Assessing Officer having the jurisdiction over the concerned assessee or to any other officer or agency as may be directed by the Resource Centre with the approval of the Board and hand over the acknowledgement of having furnished the return to the concerned eligible person.

2. Incentive to the Tax Return Preparer under Tax Return Prepare Scheme 2006

Situatiosn Amount of Commission Who will pay the Commission
A. In case the Return is of New Assessee
Return of the First Year

3% of the tax paid by the assessee subject to maximum of Rs.1000

Resource Centre or Partner Organization. See note 3 in the box.

Return of the Second Year

2% of the tax paid by the assessee subject to maximum of Rs.1000

Resource Centre or Partner Organization. See note 3 in the box.
B. In case the Return is of Old Assessee
  Rs. 250

By the eligible individual or HUF on whose behalf such return is filed

 

  1. New assessee means an individual or HUF who has either not furnished return of income in the past or who has not furnished the return of income for 3 assessment years or more than 3 assessment years immediately preceding such assessment year.

  2. In case of a new assessee, the commission/ remuneration has to be paid by Directorate of Income Tax constituted by the Board to act as 'Resource Centre' or by the Partner Organization with whom an agreement has been entered into by the Board or the Resource Centre authorizing it to act as Partner Organization. Such commission of new assessee in any of the above three years shall be minimum of Rs. 250.

  3. In case of a new assessee if the commission/remuneration calculated as per the rate given above is less than Rs. 250, such deficit shall be charged by the TRP from the eligible person i.e. individual or HUF whose return he has filed.

  4. "Eligible person" means any person being an individual or a Hindu Undivided Family.

CONTENT : Return of Income and Procedure of Assessment (Section 139 to 154)

Related Topics... Return of Income and Procedure of Assessment

 



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