Income Tax

Educational qualification and age limit for TRP relaxed, incentive increased, non-refundable deposit made compulsory

Educational qualification and age limit for TRP relaxed, incentive increased, non-refundable deposit made compulsory as per Return Preparer (Amendment) Scheme, 2018  

Government of India has designed the Tax Return Preparer Scheme (TRP Scheme) to assist small and medium taxpayers in preparation of their return of income and other income tax related issues. The TRP Scheme authorizes tax professionals called as the Tax Return Prepares (TRPs).

The Scheme is managed by the Income Tax Department. The Tax Return Preparer Scheme 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.

The following significant amendment has been made to the  Tax Return Preparer Scheme, 2006. by  Tax Return Preparer (Amendment) Scheme, 2018.

Educational qualification for Tax Return Preparers.

The Educational qualification for becoming Tax Return Preparers has been relaxed. Earlier individual holding 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 were eligible to act as Tax Return Preparer. Under the amended scheme,  Bachelor degree in any discipline is sufficient and also those who have passed intermediate level examination conducted by ICAI/ICSI/ICMAI are eligible to act as Tax Return Preparer.

Age Limit for TRP

As against the maximum age limit of 35 years, age limit has been relaxed to 45 years as on the 1st day of October of the year immediately preceding the date on which applications are invited.

Increase in Application Fee

The application fee of one hundred rupees has been increased to  250 rupees.

Non Refundable Deposit

For Enrolment as TRP, the applicant shall have to makes a nonrefundable deposit of Rs. 750/-.

Incentive to Tax Return Preparers

The percentage incentives payable to TRP has been increased as under:

Earlier After Amendment
3% of the tax paid on the income declared in the return of income for First Eligible Assessment Year
(b) 2% of the tax paid on the income declared in the return of income for the Second Eligible Assessment Year
(c) 1% of the tax paid on the income declared in the return of income for the Third Eligible Assessment Year 
 (a) 5% of the tax paid on the income declared in the return of income for First Eligible Assessment Year 
(b) 3% of the tax paid on the income declared in the return of income for the Second Eligible Assessment Year
(c) 2% 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.

Download Return Preparer (Amendment) Scheme, 2018 Click Here >>

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  • Glad to read this news as I am now 38 years old and age relaxation to become trps will be more advantageous for a person like us who want to take an initiative in this field.
    Thanks to Abacus

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