Jagoinvestor
July 23, 2013
Get your Income Tax Return Prepared by TRP at Home for FREE
Do you know that Income Tax Department offers your tax filing services at your door step with help of a trained and certified professional who can help you with tax filing and in many cases totally FREE of cost or at a small fees ? Let me introduce to the concept of TRPS (Tax Return Preparer Scheme) . Just like you have CA , you have something called as TRP or “Tax Return Preparer” trained by Income Tax Department for helping a tax payer in preparing and filing his income tax returns.
What does a Tax Return Preparer (TRP) do ?
Mainly a TRP (Tax Return Preparer) helps a person to file his income tax returns. But lets see it in detail. Mainly a TRP shall
- Prepare the return with due diligence;
- Affix his signature on the return prepared by him;
- Furnish the return with the Assessing Officer having the jurisdiction over the concerned assessee or to any other officer or agenc as may be directed by the Resource Centre with the approval of the Board;
- Hand over a copy of the return to the person whose return is prepared and furnished by him;
- Retain a copy of the acknowledgment of having furnished the return;
- In respect of returns prepared and furnished by him during a month, maintain record of the following, namely
- the name of assessees whose returns of income have been prepared and furnished by him during that month;
- the permanent account number of such assessees;
- assessment year;
- date of furnishing the return;
- acknowledgment number;
- jurisdiction of the Assessing Officer;
- amount of income declared in the return;
- amount of tax payable;
- amount of tax paid;
- The fee charged and received by him
How to Find a TRP for yourself ?
Note that you can find a TRP in your home town or near you and he will visit your home/office and do all the work for you. You can visit this webpage and find out a TRP in your city. Or you can fix an appointment by filling up this form and a TRP will call you back to confirm your appointment. Even if you are doing everything on your own and want some help on filing your ITR (download this ITR FAQ guidebook), you can tax online help by asking question here and you will get back a call for help.
You can also call the helpline at 1800-10-23738 or mail to [email protected]
How much does a TRP charge as Fees ?
Now this is a little interesting and you should know this. Income Tax Department knows that most of the individuals do not file their ITR, because they have no idea how to do it and hence they either dont pay tax or just keep delaying it. So if someone knows that he will get help in filing the Income Tax Return (ITR) at his door step, the chances are many people will give it a try and hence the tax revenues will go up for Govt.
So Income Tax Department pays incentives to TRP for every returns filed by them. The amount of incentive depends on how many tax returns you have filed till now . If you are filing it for the first time, then the incentive is 3% of the tax paid . If a person is filing his returns for 2nd time in life, then its 2% incentive and for 3rd time its 1% . The higher incentive is given when someone files his return for the first time, because its his entry into tax filing world and generally people shy away from that first time only. A TRP will not get any incentive from govt if a person has already filed his returns more than 3 times. So in a nutshell, TRP’s incentive is directly linked to how many more tax payers they can add to the pool of tax payers.
Upto Rs 250 as charges
However TRP’s are also allowed to charge upto Rs 250 from the income tax payer if he wants to . So some TRP’s charge the fees and some dont if they know that their incentive will cover their charges.
To explain to you with an example. Lets say if a person has paid Rs 20,000 as income tax. Then as an incentive , a TRP will be 3% of 20,000 – which is Rs 600 . Now a TRP might not charge you directly because he anyways is going to get it from govt, or if he feels – He can still ask your for some money as fees (subject to maximum Rs 250) .
However lets say your income tax payable is just Rs 2,000 , in which case 3% of 2,000 is just Rs 60 and surely the TRP will ask you for his fees . However its always a good idea for you to know how he is being paid so that you can tell him and get it negotiated. But I think if they do a good job, there is nothing wrong in paying their small fees , at the end they give you door step service.
Note that these TRP’s are actually trained by Income Tax Department with help of third party companies like NIIT. This step was taken by Income tax department to raise awareness level of tax filing among tax payers, to give them door step services and at the end help in generating self employed through this scheme. There are various TRP’s who have filed tax returns for thousands of individuals and now serve a big client base.
what if TRP charges more? i got email that TRP will charge Rs 800 for ITR-II. where i can complaint.
You have an option to “not take their services”
Dear Manish,
My Mother deceased recently, and as me being the nominee for the accounts, received her savings to my account,
How do i fill the tax deduction for this inherited money received.
Along with money which i earn thru own business which i credit by cash to my account.
Please help me on this.
Thankyou
Hi Siddarth
A CA is more qualified to answer you query, hence I suggest better get in touch one.
We are not right people to talk on this
Manish
Hi
I had received a IT notice for not filing the return.i had never filed my IT return till now .
My friend said use the service of a ca.
I would like to know since I do not know anything regarding taxation I am completely depending on a ca.
If there is anything wrongly done in the filing who will be liable me or the ca?
I want to know how to prove that the return is prepared by using a ca?
Only you are liable for that, even if CA is doing it. But dont worry, they dont make silly mistakes 🙂 . You need to trust them ..
Great Post ! Also i want to know That Eligibility criteria for becoming a TRP , the person has to be a graduate in law and statistics which has no connection to taxation of all
I couldnot file my tax return during AY 2013-2014 How can I file the same now
Hi santosh khanna
The question asked by you is beyond our scope. Its suggested that you hire an expert on the issue and pay them for the advice.
Manish
Can a government(LIC) employee become a TRP under this scheme????……
Thanks
Kumar
Yes, why not .. any one can
I am TRP based in Akola and NAgpur
Thanks Manish Chauhan for sharing info about TRPs.
If anybody need my service, please call me mb- 8421281199
Welcome
How does one become a TRP? I suppose TRPs are appointed by the IT Department; can you tell how to contact them and become one? Who is eligible? What are the formailities?
You have to apply for becoming one . Check out their website !
Manish,
Nice information as usual. The TRPs almost always charge for filing the tax returns. The charge usually varies between Rs. 100 /- ( New person trying to get more people) to Rs. 1000/- or even more (based on the complexity). People opt for any person, may be an assistant to TRP, to file their returns.
E-filing through https://incometaxindiaefiling.gov.in/ for ITR 1 itself provides the form. Its just copying the correct figures from Form-16 to ITR 1 in the form. If the complexity is high, filing ITR 2, 3 or 4, then it makes sense to make use of a TRP. Also, I would think, anyone, visiting you in person, would end up getting some money.
Even those just filling up the form with the details we provide (for ITR 1) charges about Rs. 250/-.
http://cleartax.in/ has come up with an option to file the taxes by importing form 16 and it is also for free.
Thanks,
Manickkam.
Yea . I agree . But a lot of people even if its ITR 1 , prefer paying some money and outsourcing that to someone else !
Manish
Hi Manish,
Thanks for the info.
I filed my return through http://www.taxspanner.com. Do they qualify as TRP? Should this be mentioned in the ITR-V acknowledgement form?
Regards,
Sukanth
Sukanth,
If they consider themselves as TRP, the ITR V would be auto-filled with their TRP details. If you find no TRP details filled in ITR V, it probably means, they have provided better tools for you to file the returns yourself. There is no TRP involved.
Thanks,
Manickkam.
I dont think so , as far as I understand , it has to be an individual !
I am sorry to pop this question here. I am unable to view FORM 26AS to file my returns. All TDS is owed to deductions on deposits for which I have few quarterly Form 16A’s from the bank. Is there anyway I could view Form 26AS?
You can go to the online website of Income tax department and check your form 26AS online. There is a possibility that it is up-to-date yet. Please contact your bank or deductor in that case and you can get the tax credit information from them as well.
You have to first register yourself with your PAN number in the Income tax department before trying to check your tax credit.
Thanks,
Manickkam.
Urgent Help Needed!!
I filed my return (ITR1) online. Just now i came to know that i forgot to pay self assessment tax. ITR V shows tax to be paid.
I paid the tax online from my bank account.
Now how to re-file return?
I tried to upload re-generated xml but not allowed to do so. error – can file original return only once. will my return be considered u/s 154 ?
Pls help ASAP.
Thanks in advance.
Hi Darsh,
Its true you can file the original return only once. Please use the excel template to enter the self assessment tax details paid by you make sure that this time tax to be paid is shown as zero.
In the first sheet named as “Income Details” you will see in row # 28 a field called “Whether original or revised return” select revised here and give other details like last/original acknowledgement number etc.
Generate the xml and upload it.
Thanks,
Swetank
Thanks. I did so. But if I keep selected @ row 24 – Return filed under section as – 11 – on or before due date s139 1 – I get sheet validation error.
I think I should change it to – 17 – Revised S139(5)
Is it correct ? Pls reply.
Thanks again.
yes you should change that to revised.
Thanks Swetank for shairng that . I myself do not understand this part. Can you teach us some main points of this .
Hi Manish,
I am not sure whether I am going to exactly answer your query; but below I am mentioning few FAQ for rectification of IT returns from a website called TaxIndia (http://www.taxindia.com).
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How to file Rectification Request in case of e-filed I-T Return
Article deals with FAQ related to Rectification of errors in case of return filed online. The article explains about how to file Rectification request, what if you get error in filing rectification u/s 154, What if demand been wrongly raised or refund been processed at lesser amount.
QUESTIONS RELATED TO REVISED RETURN & RECTIFICATION
Can I make rectification or other correspondence with CPC in paper form?
Answer: No
What CPC reference number should I enter while filing Rectification request?
Answer:You need to enter the Communication Reference Number as per the latest order/intimation received from CPC u/s 143(1) OR 154.
I am getting error while filing rectification u/s 154, “Incorrect details. Please enter details as per the latest order.” What should I do?
Answer: This error occurs due to one the following reasons:
1. When you are entering one of the below fields wrongly-
•Communication Reference Number
•CPC Order Date
Ensure that you enter the above two fields exactly as mentioned in the CPC Order. Also, please make sure you select the correct Assessment Year.
2. If a subsequent CPC Order exists. For example: If you have received an intimation/order from CPC on 23rd September, 2011 and another on 30th November, 2011 you can file a Rectification using the latest i.e. the order received on 30th November,2011, for the relevant Assessment Year.
3. If you have filed a Rectification for a relevant Assessment Year and the same has been rejected by CPC, a new Order is sent by CPC. Now, if you are filing another rectification using the old CPC Communication Reference number, the error message will occur.
I am getting error while filing rectification u/s 154, “Rectification application already submitted for this Assessment Year.” Can I file another Rectification request?
Answer: No. You can file another Rectification ONLY once the previous one is processed in CPC. You will get an Order u/s 154 once the Rectification is processed. To view the status of your e-Filed Rectification, LOGIN and GO TO ‘My Account’ → ‘Rectification status’.
I want to file a Rectification for correcting data for Tax Credit mismatch ONLY. Do I need to upload an XML (generated from the Excel Return preparing software utility)?
Answer: No. Select the user type as ‘Taxpayer Correcting Data for Tax Credit mismatch only’ and then provide TCS, TDS or IT (Advance Tax/Self Assessment Tax) details. Submit the request. No XML upload/submission is required.
I want to file Rectification to correct data. Do I need to upload an XML (generated from the Excel Return preparing software utility)?
Answer: Yes. However, according to the provision u/s 154 in Income Tax Act, an assessee can only file Rectification for data apparent from the record.
I want to file a Rectification request for reprocessing my Income Tax Return for tax Credit mismatch OR Gender mismatch OR Tax/Interest mismatch. Do I need to upload an XML (generated from the Excel Return preparing software utility)?
Answer: No. Select the user type as ‘No further Data Correction required. Reprocess the case’ and then select the respective check-box: Tax Credit mismatch OR Gender mismatch OR Tax/Interest mismatch. Submit the request. NO XML upload/submission is required.
I am audited under Section 44AB. Is it mandatory for me to file Rectification using Digital Signature Certificate?
Answer: Yes.
I am the authorized signatory of a company. Is it mandatory for me to file Rectification for my company using Digital Signature Certificate?
Answer:Yes.
How can I see the rectification status?
Answer: LOGIN and GO TO ‘My Account’ → ‘Rectification Status’.
My e-Filed Income Tax Return has been processed by CPC raising a demand or with less refund. Whom do I need to approach for Rectification?
Answer: In case your Income Tax Return for the relevant Assessment Year is processed and is with CPC, online Rectification request may be made on website. However, in case, the rectification rights are transferred to AST then, you need to approach AO with rectification application on paper. For knowing whether the processed Income Tax Return is with CPC or AO, the taxpayer should LOGIN and GO TO ‘My Account → My Returns/Forms’ and check the status.
If assessee has uploaded wrong rectification request, what is the process of correction of rectification.
Answer: Assessee can withdraw rectification within 7 days of upload, if assessee has uploaded wrong rectification request. LOGIN and GO TO ‘My Account’ → ‘Rectification status’
Can an Income Tax Return e-Filed with one ITR Form say ITR-2 be rectified in any other ITR form?
Answer:No.
The demand raised by CPC has been paid off by me, do I have to file rectification to get this demand reduced?
Answer: No, the demand will automatically get reduced by the payments made therein (minor code 400).
The return for AY 10-11 was a refund, which is adjusted with the demand of AY 2009-10, this demand was already paid off by me what should I do to get the refund wrongly adjusted?
Answer: Apply for rectification for the year of demand AY 2009-10.
If CPC sends intimation after processing the return but the amount of demand/refund is incorrect. At the time of filing of rectification, inspite of providing the correct details, the error message : „Input data does not match the records‟. What is the solution?
Answer : Kindly refer to the following document regarding the „Common Errors noticed while filing rectification‟
Common Errors in E filed I-T rectification requests
If the entire details provided at the time of rectification are correct and still the assessee is facing the above error, then kindly send a mail to [email protected] with the following details :
CPC Order No
CPC Order Date
Aggregate Income Tax Liability (As Computed)
Total Tax Credit Allowed (As Computed)
(amended on 09.04.2013)
Thanks,
Swetank
Thanks Swetank
Let me have a look at it and get back !
Good things about TRP. now lets see other side. thney have limitation for filing as they can’t file all ITRs. or ITRs for all sources of income. though they are trained, they are not accountable. and Income tax or any tax is not so simple in india. they are just trained to file and about basic aspects of income tax which a student or user can read in books but indepth knowledge is required for doing justice Else mistakes will result in tax and penalties for which TRP will not take responsibility.
Thanks for sharing that info with us
Thanks again for covering this topic in depth. As per the details provided in the article, it seems there is a limit of Rs 250/- to be charged by TRP, I know of various TRPs who charge over Rs 500/- from the tax payers as fees. Is this against the law?
Yes, its against law
Thats a fantastic proposition. Thanks for the infromation.
The best part is door steps… here even I can learn from them a bit on tax filing…
Yea
Good Info Manish 🙂
I know some websites provides free e-filling for ITR1 (and they are earning commission from IT department). But didn’t find any website offering free e-filling for ITR2. Also I have doubt that any TRPS is providing free service if they comes at your doorstep. This I have seen in my company where lot of people opt for TRPS and pay the fee. I have also seen the cases where tax return’s got rejected by IT due to mistakes done by TRPS.
There is no rebate for the people who files their own return and if he files through TRPS then TRPS got the commission, if IT provides some rebate than lot of people will file their own returns and that way IT can spread the awareness.
Thanks for sharing that . I agree there will be many TRPs who are not following things as set 🙂