Tax Return Preparers Scheme for small tax paying people

Tax Return Preparers SchemeThe Government has approved TaxReturn Preparers Scheme to train unemployed and partially employed persons to assist small and medium taxpayers in preparing their returns of income. During the current financialyear the scheme is being launched, on a pilot basis,to train 5,000 TRPs at 100 centres in around 80 cities across the country.These 5,000 TRPs would be certified by the second week of February 2007.
The scheme proposes to achieve the following objectives:
•It will reduce the cost of compliance for small and marginal taxpayersand encourage them to
comply with tax laws.
•It will provide self-employment opportunities to unemployed or partiallyemployed graduates all over the country.
The salient features of the scheme are given below:Assistance in filing tax returns freeof cost would be extended to self-
employed and small businessmen, salaried employees, senior citizens,and women having total income
up to a specified amount.
The minimum qualification for undergoing training as Tax ReturnPreparers would be a graduation degree in Commerce, Law, Economics,Mathematics, Statistics, and Management.The training for 9 dayswith 8 hours sessions each would be imparted tothe prospective Tax Return Preparers by the Income Tax Department with the help of a training partner NIIT, using class- room training &web-based teaching. The training willbe preceded by a fifteen days selfstudy programme.The cost of training, the cost of examination and all other associated costs would be borneby Government.A fees of Rs 100/- will be chargedalong with the application.A refundable deposit of Rs 1000/- will be collected from the candidatesbefore enrolment and the same shall be returned after successful completion of training.
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A “Tax return Preparers Course Comple
tion Certificate” and an Identity
Card bearing a unique identification
number would be issued at the end
of each training programme. The un
ique identification number would be
used for monitoring the performance of the Tax Return Preparers,
issuing quality alerts and cancellati
on of certificates, if required.
The Tax Return Preparers would be re
imbursed 3% of the tax collected
for the first year’s return of a new ta
x payer, 2% for th
e second year and
1% for the third year, on the returns
prepared by tax returns preparers.
For preparing returns of existing tax
payers, TRPs will collect from the
taxpayer Rs. 250 for return for every assessment year.
The tax return preparers would normally operate from their residence.
However keeping in mind
the convenience to the
public, the local CCIT
may position them at places like th
e department’s Help Centres, post
offices, traders associations, school
s, resident welf
are associations,
community centres etc.
The scheme would be widely publicized through the electronic and print
media.
¾
The pilot scheme would be contro
lled, managed and coordinated by
a Resource Centre.

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