Section 139B of the Income Tax Act, 1961, allows taxpayers to file their income tax returns through authorized Tax Return Preparers (TRPs). This provision aims to simplify tax compliance, especially for small taxpayers and those unfamiliar with the e-filing process.
1. Who is a Tax Return Preparer (TRP)?
A TRP is a professional authorized by the Income Tax Department to:
- Assist taxpayers in preparing and filing ITRs.
- Notan agent or representative (unlike a CA/CS).
- Cannot represent taxpayers in assessments/appeals.
Eligibility to Become a TRP
- Must pass the TRP examconducted by the Income Tax Department.
- Registered on the e-filing portalas a TRP.
2. Key Features of Section 139B
(A) Who Can Use a TRP?
- Individual taxpayers(salaried, freelancers, senior citizens).
- HUFs(without complex income sources).
- Small businesses(if turnover < ₹50 lakh).
Excluded Entities:
- Companies, LLPs, trusts, or taxpayers needing audit (Section 44AB).
(B) Responsibilities of a TRP
✔ Prepare and file returns accurately.
✔ Ensure all income sources are disclosed.
✔ Guide taxpayers on tax-saving deductions (80C, 80D, etc.).
✔ Not liable for errors if the taxpayer provides incorrect data.
(C) Taxpayer’s Obligations
- Must verifythe return via Aadhaar OTP/DSC.
- Must retain all documents(in case of scrutiny).
3. How to File Through a TRP?
- Find a Registered TRP(via the e-filing portal).
- Submit Income & Investment Details(Form 16, rent receipts, etc.).
- TRP Files the Return(electronically).
- Taxpayer Verifiesvia Aadhaar OTP/EVC/DSC.
4. Advantages of Using a TRP
✅ Low-cost assistance (compared to CAs).
✅ Simplified filing for non-tech-savvy taxpayers.
✅ Reduces errors in ITR submission.
5. Limitations & Risks
⚠ No legal representation in disputes.
⚠ TRPs cannot file revised returns (taxpayer must do it).
⚠ Penalties apply if TRP files incorrect returns knowingly.
6. Penalties for Non-Compliance
- If a TRP deliberately files wrong returns, they can be blacklisted.
- Taxpayers remain responsiblefor any misreporting.
