What Is The Full Form Of TRP In Income Tax?
TRP full form in income tax is Tax Return Preparer. It’s a program started by the Indian Income Tax Department to help small and medium taxpayers file their income tax returns. The program also helps in the creation of job opportunities for college graduates who are unemployed or partly employed, apart from also focusing on assisting in the acquisition of knowledge by more individuals concerning tax laws, with the hope of getting more people to pay taxes.
Eligibility and Training:
To be a TRP, you need to apply and go through training. First, you fill out an application and pay a small fee. The next thing is training, which takes place in some learning centers. After you are trained, a test is given in order for you to become a TRP. New preparers are accepted every two years in this program.
Services Provided by TRPs:
TRPs help individuals and Hindu Undivided Families (HUFs) file their income tax returns. These are groups that don’t need an audit under certain tax laws. TRPs are trained to file taxes for new taxpayers and make sure both the taxpayer and the tax officer get a copy of the tax return.
Compensation and Charges:
TRPs are paid by the Income Tax Department and earn a percentage based on the tax paid by a person whom they help. This incentivizes TRPs to assist as many taxpayers as they can. The workers are paid at 3% beginning in the first year and become fixed in the subsequent years at a certain level without going overboard.