CBDT notifies Tax Return Preparer Scheme
The Tax Return Preparer Scheme, 2006 has come into force from 1st December, 2006. The highlights:-
Educational qualification for Tax Return Preparers – Degree in Business Administration or Management or Commerce or Economics or Law or Mathematics or Statistics and not more than 35 years old.
No return through Tax Return Preparer if
++ The assessee is required to get his accounts audited
++The assessee is not a resident Indian.
++ In case of revised return, if the original return was not furnished through the preparer.
++ If the return is required to be furnished in response to a notice from the department.
The Tax Return Preparer will 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.
Want to avail the service? Then ensure that
++ Your return of Income falls under this Scheme
++ Approach and authorize any Tax Return Preparer to prepare your return
++ before verifying and signing the return, ensure that the facts mentioned in the return are true and correct.
++ You certify the amount paid to the Tax Return Preparer.
++ You take a receipt of the payment made to the Tax Return Preparer
And what will the Tax Return Preparer do?
(i) prepare the return with due diligence;
(ii) affix his signature on the return prepared by him;
(iii) furnish the return with the Assessing Officer
(iv) hand over a copy of the return to the person whose return is prepared
(v) retain a copy of the acknowledgment of having furnished the return;
(vi) maintain record of the following, -
++ the name of assessees whose returns of income have been prepared;
++ the permanent account number of 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 amount disbursable to him
++ the fee charged and received by him
He should furnish a statement of the above particulars for every month on or before the seventh day of the immediately following month to the Resource Centre.
Incentive to Tax Return Preparers.
++ three per cent of the tax paid on the income declared in the return of income for First Eligible Assessment Year
++ two per cent of the tax paid on the income declared in the return of income for the Second Eligible Assessment Year
++ one per cent of the tax paid on the income declared in the return of income for the Third Eligible Assessment Year
subject to a maximum of Rs. 1000/- per assessee.
NOTIFICATION NO. Dated: November 28, 2006