Hi all,
When you hire a CA for filing what is expected from him he asked me my income tax user id password which I thought wasnt necessary to give as someone else said. So he said he would give me the excel file which I should upload.
Shouldnt he sign and give that tax has been filed by the CA in the ITR form which should be mailed to bangalore income tax office. He also said he doesnt give anything which says so. Is it the way it goes.
Hello lemondew,
You now know why one has to give her / his ID and pwd to the CA or to the person who is preparing your IT Return.
To answer the second part of your query, below is as per my understanding -
1. It is not mandatory for tax payer to hire a CA for tax return filing.
2. Tax payer is free to file the returns on his own or with the help of a person
who knows the process. (knowing is important so as to avoid re-filing and
many other unnecessary notices and communications with IT Dept.)
3. Tax payer may take help form people known as TRP (Tax return
preparer). They are certified by IT Dept. (post examination). They are
authorized to sign on the IT return verification form ITR-V (which is sent to
Bengaluru duly signed by the tax payer). No other document is to be signed
by the TRP.
4. If a person is not a TRP and not the tax payer in person, she/he cannot sign
on any document relating to IT return.
5. In any case (with the help of TRP or not), the accuracy and authenticity of
the details / information / figures given in the IT return are the sole
responsibility of tax payer alone. She/he is the person to face the questions
of the IT Dept. officer
So, why to hire a CA -
1. CA is required for issuing the audit certificate (if applicable)
2. CA is more or less familiar with IT rules like direct taxes, indirect taxes,
corporate tax, excise tax, goods tax, octroi tax, service tax, import / export
tax etc... which depends on CA's field of liking and experience and thus his
expertise after completing the CA course.
3. For salaried and small business entities, every CA will know but does not
mean he will be well familiar and has hands on experience with the latest
rules.
4. Professional CA's hire undergraduate B.Com / M.Com / CA to work on
income tax related matters as a learning curve for them + income. These
trainees are the people who will prepare the IT return for the tax
payer. The main CA only scans and approves, which is not the case many a
times.
Hence even if you hire a CA, check your IT return before filing.
The knowledge / skill / aptitude of the person preparing the IT return is what matters.
It does not matter if she/he is a CA or B.Com or M.Com or B.E. or B.Tech or Lawyer or an undergraduate or for that matter even a school / college drop out, as long as the IT Dept. rules and regulations are complied with, the tax payer is safe and sound.
Enjoy,
CArnot
