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CMA Intermediate · Direct and Indirect Taxation · Filing of Return of Income

Under the Income-tax Act, 2025, an individual who is not a company and whose accounts are not required to be audited wants to file the return through a tax return preparer. Which statement is correct as per section 264?

The Board may notify a Scheme for returns through tax return preparers, irrespective of section 263. The specified class excludes companies and persons whose accounts must be audited, and the preparer must be an authorised individual who is not an employee of the specified persons.

  1. AThe Board may make a Scheme for specified classes of persons, excluding companies and persons whose accounts require audit, irrespective of section 263Correct
  2. BEvery assessee including companies may use a preparer under the Scheme
  3. CThe Scheme can operate only within the due date and conditions of section 263
  4. DA tax return preparer must be an employee of the specified class of persons

Explanation

Section 264(1)(b) lets the Scheme be made irrespective of section 263. Section 264(2)(b) excludes companies and persons whose accounts must be audited from the specified class. A preparer is an individual who is not an employee of the specified persons, so the last option is wrong.

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