Section 139B of Income-tax Act: Tax Return Preparers Scheme
Section 139B of the Income-tax Act, 1961 authorised the Central Board of Direct Taxes (CBDT) to establish a scheme for eligible taxpayers to prepare and submit income-tax returns with the assistance of authorised Tax Return Preparers (TRPs). The corresponding provision under the Income-tax Act, 2025 is Section 264.
What is a Tax Return Preparer?
A Tax Return Preparer (TRP) is an individual authorised under a scheme notified by the CBDT to help eligible persons prepare and furnish income-tax returns. The authorisation is scheme-specific; it is not the same as merely offering commercial tax-filing services or being registered as an e-return intermediary.
The scheme is intended to improve access to filing assistance while maintaining prescribed standards for qualifications, training, conduct and accountability. The taxpayer remains responsible for the accuracy of information provided and the return's required verification.
Section 139B of the Income-tax Act, 1961
Sub-section (1): Power to frame a scheme
The Board could notify a scheme allowing specified classes of taxpayers to furnish returns through an authorised TRP, without affecting the general return-filing provisions of Section 139.
Sub-section (2): Assistance and signature
An authorised TRP was required to assist a taxpayer in the manner specified in the scheme and affix the TRP's signature to the return, as prescribed.
Sub-section (3): Definitions and eligible taxpayers
For this provision, a TRP meant an individual authorised under the scheme, excluding specified categories of authorised representatives under Section 288(2) and an employee of the relevant taxpayer class. The specified class of persons excluded companies and persons whose accounts had to be audited under Section 44AB or another applicable law.
Sub-section (4): Matters governed by the scheme
The scheme could specify the manner and duration of authorisation, educational qualifications, training requirements, code of conduct, duties and obligations, withdrawal of authorisation, and other implementation matters.
Sub-section (5): Parliamentary oversight
The notified scheme had to be laid before both Houses of Parliament for a total of 30 days, with provision for modification or annulment by agreement of both Houses, without invalidating actions previously taken under it.
Historical note: Section 139B was inserted by the Finance Act, 2006 (Act 21 of 2006), effective 1 June 2006. The Tax Return Preparers Scheme, 2006 provided the operational framework under the earlier law.
Section 264 of the Income-tax Act, 2025
Section 264(1) permits the Board to make and notify a scheme for preparing and furnishing returns through authorised tax return preparers for specified classes of persons. The provision expressly operates irrespective of Section 263, which deals with returns of income.
Section 264(2)(a) defines a tax return preparer as an authorised individual, subject to the exclusion concerning representatives referred to in Section 515(3)(a)(ii) and employees of the specified taxpayer class.
Section 264(2)(b) defines the eligible class by excluding companies and persons whose accounts must be audited under Section 63 of the 2025 Act or any other law. Section 264(3) requires scheme notifications to be issued in accordance with Section 534.
Under Section 536, repeal and savings rules address the continued treatment of earlier years and existing subordinate instruments. Whether a particular scheme, authorisation or procedure continues to apply must be checked against the current notification and any amendments.
Key legal provisions at a glance
| Subject | 1961 Act | 2025 Act |
|---|---|---|
| Tax Return Preparer scheme | Section 139B | Section 264 |
| General return-filing provision | Section 139 | Section 263 |
| Audit-based exclusion | Section 44AB | Section 63 |
| Excluded authorised representatives | Section 288(2), as specified | Section 515(3)(a)(ii) |
| Notification and scheme procedure | Section 139B(4)-(5) | Sections 264(3) and 534 |
Practical guidance for taxpayers
- Confirm eligibility. Companies and persons subject to mandatory audit generally fall outside the specified class under these provisions.
- Check authorisation. Ask whether the person is authorised under the relevant notified TRP scheme; do not rely on a generic claim of being a tax preparer.
- Review your return. Verify income, deductions, tax credits, bank details and disclosures before submitting or authorising submission.
- Complete verification. Follow the applicable verification requirements on the official Income Tax e-Filing portal; assistance by a TRP does not dispense with statutory verification.
- Keep records. Retain the filed return acknowledgement, supporting documents and evidence of any authorised assistance.
Frequently asked questions
Can every taxpayer use a TRP under Section 139B or 264?
No. The statutory scheme is directed to specified classes of taxpayers, and companies and persons whose accounts require audit are excluded from the defined class. The current notified scheme must also be checked.
Is a TRP the same as a chartered accountant?
No. TRP is a distinct statutory scheme-based authorisation. Professional qualifications and rights of representation are governed by their own provisions.
Does the 2025 Act remove the option of assisted filing?
No. Section 264 expressly retains the Board's power to establish a notified scheme for filing through authorised tax return preparers.
Official legislation and filing resources
- Income-tax Act, 1961, as amended by Finance Act, 2025 (Income Tax Department PDF) - Section 139B.
- Income-tax Act, 2025 (Income Tax Department PDF) - Sections 63, 263, 264, 515, 534 and 536.
- Income Tax Department - Income-tax Act, 2025 and transition resources.
- Official income-tax e-Filing portal.
This article provides general legal information. Filing requirements, scheme notifications and eligibility should be confirmed against the law applicable to the relevant tax year.