Discover the crucial declaration to safeguard tax professionals in income tax filings. Get insights on the need, benefits, and a customizable draft format for professional protection.

Ensuring Professional Protection: Declaration Safeguarding the Interests of Tax Professionals in ITR Filing

In the realm of income tax filings, a recent notice from the Income Tax Department was circulated widely on social media. The notice required the submission of comprehensive details regarding the Chartered Accountant (CA), Tax Return Preparer (TRP), or other professionals involved in the filing of the income tax return. This development has brought to light the need for safeguarding the interests of professionals engaged in income tax filings.

To address this concern, it is recommended that a well-drafted declaration be obtained from the assessee prior to the filing of their income tax return. This declaration serves as a protective measure, offering security to professionals while ensuring compliance with the Income Tax Department’s requirements.

Tax Professionals Filing

By obtaining complete details of the CA, TRP, or professional involved in the tax filing process, this declaration establishes transparency, accountability, and adherence to legal obligations. It also provides a means to mitigate potential legal consequences.

For the benefit of professionals, a draft format of the declaration is annexed herewith. This draft declaration can be customized and utilized as a valuable resource in ensuring compliance and safeguarding the interests of professionals in the income tax filing process.

Disclaimer: This article is for informational purposes only and does not constitute legal advice. Readers are advised to consult with a qualified legal professional for guidance tailored to their specific circumstances.

[Annex: Draft Declaration Format and copy of notice]

Undertaking/ Declaration

I, _______________, S/o, W/o, D/o Shri _______________, residing at _______________ _______________ _______________, declare as under: –

1. That My PAN is _______________

2. I intend to file My Income Tax Return (ITR) for the Assessment Year (AY)……………….,  As I am not well-versed with the Income Tax Portal, I hereby authorize Mr/Mrs/Ms [Name of Tax Professional] of [Tax Professional’s Firm/Company] to assist me in filing my Income Tax Return in a professional capacity.

3. The details provided by me regarding my income, expenditure, deductions, balance sheet, debtors, creditors, cash, etc., are true, correct, and pertain to the aforementioned PAN.

4. I have thoroughly reviewed all the data filled in the Income Tax Form and confirm that the entire information reflected in the ITR is correct, accurate, and belongs to me.

5. I hereby undertake full responsibility for the aforementioned information provided by me.

6. I understand that if any information or details are found to be incorrect or false, I will bear complete responsibility for the same and will face any legal consequences that may arise.

7. I also authorize the use of my digital signature or generation of OTP through Aadhaar or any other mode of verification deemed necessary for the authentication of my Income Tax Return.

(Mr……………………)

Verification

I, …………………………………….. declare that above Information are correct and true to best of my Knowledge & belief.

(Mr……………………)

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6 Comments

  1. vswami says:

    Apropos of pr. Comments : There is yet another matter expected to be of most concern to CAs in practice and their clientele in taxable income range – 50 lakhs to 5 crore rupees and over . For more , if so care and minded look through the several posts on social and other websites such as Linkedin – also of TAXGURU, on the TOPIC of- Levy and collection of EXCESS SURCHARGE on account of the SYSTEM Deficiency and erratic Auto Calculation by CPC under the NEW SURCHARGE REGIME.
    What is all the more disparaging /discouraging is the fact that the issues raised for a serious consideration and calling for effective steps to move forward on a fast track have thus far remained to be a kind of ‘shadow boxing’!? Of no less relevance are the related Posts on itatonline.org highlighting and urging the utmost need for a timely ACTION!

    courtesy

  2. Muthiah Lakshmanan CA says:

    In addition it’s better to get the exact amount of exemptions/deductions to be claimed with confirmation of the amount invested. It is now not clear whether certain amount of maturity received in LIC policies is taxable or not wherein TDS is made. Even if we say it’s taxable the assessees are not willing to declare the same as Income. In such a situation it’s better to get specific letter from them stating that it need not be shown as Income.

  3. vswami says:

    Author / ADMN. < "…………As I am not well-versed with the Income Tax Portal,….."
    < Reading along the lines, more so 'in between the lines', suggestion is that CAs, as a class, can reliably approached for expert professional guidance on any problem faced with ITD Portal!? On that premise, anyone of the CAs is hereby requested to assist taxpayer in deciding, in the New FORM 2 for AY 2022-23 or AY 2023-24, in the SCHEDULE for LTCG on sale of land or building, in the column (slot) requiring to fill-in "COST OF ACQUISITION ", WHAT SHOULD BE CORRECTLY filled-in,: – is it the actual cost incurred on the date of acquisition or FMV as of 1-4-2001 !?

  4. vswami says:

    The first 2 comments of Readers, selves, to my clear understanding, seem to boldly decry the newfound idea?!
    For ADMN: From the comment posted later, a CA appears to have attempted to experiment the IDEA with his clients? What is not at all understood is how he has done so, presumably knowing that demanding such a ‘DECLARATION’, without consultation with and concurrence even of the ICAI, the APEX REGULATORY for CAs? To say the least, what he has done, i strongly feel, is absurdly so irregular and unethical as to invite ‘disciplinary action’?! Any CA in serious practice having any deep thoughts to spare /share?
    Prima facie the newfound fancy- rather funny IDEA, runs counter to / daringly flies in the face of the theory of human evolution #. More significantly, is also repugnant to the reformative steps taken in the form of legislative enactments for assisting taxpayers as a community. The objective / aim of which is to ‘EASE of COMPLIANCE’ by taxpayers, in the present context of the largely accepted ever increasing complexity/growingly added complicity the law of income-tax is copiously riddled with. That is the reason why in the Tax Return Form itself a specific disclosure is mandated to be made if that has been prepared by a TAX RETURN PREPARER. This very Topic came to be discussed at great length years before; that is when the IDEA of ‘TAX RETURN PREPARERS’ happened to be mooted and eventually brought in on the statute.
    # https://www.britannica.com/science/survival-of-the-fittest
    For a detailed ANALYTICAL STUDY of the said closely related Topic, humbly suggest to care and do mind to go through the Article published under the Tile “IMPROVING TAXPAYERS SERVICE – A STUDY” (2006) 151 TAXMAN pg. 295.

    BACK/OVER to >>>>

    NOTE: Have nothing more to share/contribute!

  5. myuar says:

    Trust me, out of initial 23 itr only 2 are willing to file itr with me due to such declaration. Everyone says online 200-500 me hota hai without such declaration . Now i discontinued this else have to leave the practice

  6. C V SURYAM says:

    Please relook into this sentence of draft declaration. “I intend to file My ITR for the AY………………, since I am well verse with the Income Tax Portal, therefore …….. So, require to add NOT.

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