Employees can also become 'Tax return Preparer' - Scheme Amended
THE CBDT has amended the Tax Return Preparer Scheme, 2006. The amendments are:
a) for the proviso to sub-paragraph (f) of paragraph 2, the following proviso shall be substituted, namely :-
"Provided that a person being a person referred to in clause (ii) or clause (iii) or clause (iv) of sub-section (2) of section 288 shall not be entitled to act as Tax Return Preparer;";
(b) for clause (xii) of sub-paragraph (1) of paragraph 11, the following shall be substituted, namely :-
" (xii) if he, after issue of Tax Return Preparer Certificate to him under clause (viii) of paragraph 4 of the Scheme, becomes a person referred to in clause (ii) or clause (iii) or clause (iv) of sub-section (2) of section 288 of the Act."
Para 2(f), earlier read as,
"Tax Return Preparer" means any individual who has been issued a "Tax Return Preparer Certificate" and a "unique identification number" under clause (viii) of paragraph 4 of this Scheme by the Partner Organisation to carry on the profession of preparing the returns of income in accordance with the provisions of this Scheme:
Provided that a person being a person-
(i) referred to in clause (ii) or clause (iii) or clause (iv) of sub-section (2) of section 288; or
(ii) who is in employment and income from which is chargeable to income-tax under the head "salaries" shall not be entitled to act as "Tax Return Preparer"
Now this second proviso is deleted.
Similar is the amendment to Para 11(1)(xii).
In effect what this means is, earlier, the following categories of persons were not eligible to become Tax Return Preparer.
1.Any officer of a Scheduled Bank with which the assessee maintains a current account or has other regular dealings; or
2.Any legal practitioner who is entitled to practice in any civil court in India; or
3. An accountant
II. who is in employment and income from which is chargeable to income-tax under the head "salaries"
Now the second disqualification is removed – that is employees whose income is chargeable to tax under the head 'salaries' can also become tax return preparer.
CBDT Notification No. 84/2010 [F.NO. 142/16/2010-SO (TPL)], DATED 22-11-2010