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Incentives to TRPs

A TRP is eligible to receive incentive as per the following guidelines:

The Board may authorise the Resource Centre or the Partner Organisation to disburse to a Tax Return Preparer, the following amount, namely:

  1. Three per cent of the tax paid on the income declared in the return of income for First Eligible Assessment Year which has been prepared and furnished by him;
  2. Two per cent of the tax paid on the income declared in the return of income for the Second Eligible Assessment Year which has been prepared and furnished by him;
  3. One per cent 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:
  4. Provided that the amount of disbursement for any eligible assessment year in relation to an eligible person shall not exceed one thousand rupees:
  5. Provided further that in a case where an eligible person after furnishing his return of income for the First Eligible Assessment Year or Second Eligible Assessment Year through a Tax Return Preparer, furnishes the return for Second Eligible Assessment Year or as the case may be, Third Eligible Assessment Year through another Tax Return Preparer, the amount of disbursement to another Tax Return Preparer shall be computed at the rates applicable for the Second Eligible Assessment Year or as the case may be, the Third Eligible Assessment Year.

The Tax Return Preparer shall charge a fee of two hundred and fifty rupees for any assessment year from the eligible person for preparing and furnishing his return of income for that assessment year:

Provided that no fee shall be charged from the eligible person for preparing and furnishing the return for any eligible assessment year if the amount disbursable under sub-paragraph (1) for that eligible assessment year exceeds two hundred and fifty rupees:
Provided further that in a case where for preparing and furnishing the return of income for an eligible assessment year, the amount disbursable under sub-paragraph (1) does not exceed two hundred and fifty rupees, the Tax Return Preparer shall charge from the eligible person for that eligible assessment year a fee of the amount by which the amount of two hundred and fifty rupees exceeds the amount disbursable under sub-paragraph (1).

The disbursement due to a Tax Return Preparer under sub-paragraph (1) shall be made after processing the return under sub-section (1) of section 143.

The Board may alter or omit the provisions relating to disbursement under sub-paragraph (1) at any time without any prior notice.

Explanation:- For the purposes of this paragraph:

  1. in relation to an eligible person-
    1. "First Eligible Assessment Year" means any assessment year if the eligible person has not furnished the return of his income for three assessment years or more than three assessment years immediately preceding such assessment year;
    2. "Second Eligible Assessment Year" means the assessment year immediately following the First Eligible Assessment Year;
    3. "Third Eligible Assessment Year" means the assessment year immediately following the Second Eligible Assessment Year.
  2. tax paid" in relation to an eligible assessment year means the aggregate of tax paid by way of advance tax, tax deducted or collected at source or tax paid on self-assessment (including surcharge and Education Cess) but does not include-
    1. Interest if any, paid by the eligible person under section 234A or section 234B or section 234C; or (ii) the amount which is refundable to the eligible person under sub- section (1) of section143.
      1. Interest if any, paid by the eligible person under section 234A or section 234B or section 234C; or (ii) the amount which is refundable to the eligible person under sub- section (1) of section143.
  3. if in its opinion, the Partner Organisation has failed to perform its functions properly.