July is always a taxing time for Delhi-based doctor Vikas Anand. It's the month when he has a standing date with the Income Tax (IT) Department. Lost pay-slips, wrong investment calculations, badly filled in tax forms, wrong calculation of tax liability and frayed tempers of the IT officials are all part of Anand's annual tax-filing ritual. Until last year, that is.

In July 2007, Anand discovered tax return preparers (TRPs) and is delighted with their service. "The TRP made filing my return a lot easier," he says.

Anand is not alone. Across the country, thousands of taxpayers are using the services of TRPs. Instead of paying a small fortune to tax consultants (Rs 1,000 on average), individual taxpayers now have an easier, more accessible and cheaper option.

"It's a very good initiative on the part of the government. By paying a nominal fee to a TRP, a taxpayer can get the burden off his mind," says Surjit Sinha, a TRP who handled the returns of around 45 assessees last year.

The IT Department, in partnership with NIIT and Taxman, has trained some 5,000 graduates. As TRPs, they are authorised to compute the tax liability, fill up details on the return form and submit them at the IT Department. They are also allowed to charge a fee of up to Rs 250 per return for these services provided to existing taxpayers. In the case of new taxpayers this goes up to Rs 1,000. TRPs also get a commission from the IT Department.

You can avail of the services of a TRP through the year. Even a belated and revised return can be processed through them. Remember, however, that the TRPs are only authorised to compute your tax liability and not to give you tax savings advice. Also, TRPs are mandated to provide their services only to salaried employees and businesspersons with a turnover of up to Rs 40 lakh. "A business with a turnover beyond Rs 40 lakh requires auditing, which a TRP is not authorised to do," says Minakshi Goyal, a TRP.

Surjit Sinha, 34, New Delhi

TRP since: May 2007

Total returns filed: 45

"It's a very good initiative on the part of the government. By paying a nominal fee to a TRP, a taxpayer can get the burden of filing returns off his mind"

What it takes to be a TRP: Graduate in economics, statistics, mathematics, commerce, law or management

Age: Between 21 and 35

Should successfully go through a rigorous training programme, including web-based and classroom-based training

When you go to a TRP for help in filing your return of income, make sure you have copies of your permanent account number (PAN) card, Form 16, bank statements and details of investments made in the previous year, as well as a previous return acknowledgement in case you are not a first-time taxpayer.

These are what the TRP will use to calculate your tax liability. Once the return is filed, the TRP gives you the acknowledgment copy of the return, but not the copies of the documents. "We are mandated to keep all records of our clients," says Goyal.

Among the information that the TRP must file is the name and PAN of the assessee, date of furnishing the return, acknowledgement number of filing of return, amount of income declared, amount of tax payable, and amount of tax paid.

When you use the services of a TRP, don't forget to sign the prepared return and follow-up to make sure the return is submitted to the concerned assessing officer.

In order to ensure that TRPs are up-to-date with the changes in tax laws and rules, the IT Department has set up an online resource centre where TRPs can exchange information and ask questions. However, says Ruchi Gupta, a TRP with an MBA in insurance: "The government promised a lot but delivered little. I am still awaiting an answer to my query."

Despite such glitches, taxpayers are delighted — 40,000 taxpayers used the service of TRPs last year. With more people becoming aware of this service, TRPs could see a huge surge in their client base. For taxpayers, filing returns need no longer be a chore. For once, in the tax world, everybody wins.