Liability of representative assessee
[Section-304 as per the Income Tax Act, 2025 (this Act) w.e.f. 1st April, 2026.]
Section 304(1) of Income Tax Act 2025
304(1) Every representative assessee, as regards the income in respect of which he is a representative assessee, shall be subject to the same duties, responsibilities and liabilities as if the income were income received by or accruing to or in favour of him beneficially and for this purpose,––
- (a) the representative assessee shall be liable to assessment and any other proceedings under this Act, in his own name in respect of that income and any such proceedings shall be deemed to be made upon him in his representative capacity only; and
- (b) the tax on such income shall, subject to the other provisions contained in this Chapter, be levied upon and recovered from the representative assessee in like manner and to the same extent as it would be leviable upon and recoverable from the person represented by him.
Section 304(2) of Income Tax Act 2025
304(2) If any person, in respect of any income is assessable under this Chapter in the capacity of a representative assessee, then he shall not, in respect of that income, be assessed under any other provisions of this Act.
Section 304(3) of Income Tax Act 2025
304(3) Irrespective of the provisions of this Chapter, the Assessing Officer may directly assess the person on whose behalf or for whose benefit income therein referred to is receivable, or may recover from such person the tax payable in respect of such income.
Section 304(4) of Income Tax Act 2025
304(4) If only part of the income of a trust is chargeable under this Act, then the proportion of income receivable by a beneficiary from such trust derived from the chargeable part shall be determined as follows:—
A/B x C,
Where,—
- A = the chargeable part of the income of the trust;
- B = the whole income of the trust; and
- C = the income receivable by the beneficiary from the trust.
Section 304(5) of Income Tax Act 2025
304(5) The Assessing Officer shall have the same remedies in the same manner against all property of any kind vested in or under the control or management of any representative assessee as he would have against the property of any person liable to pay any tax, whether the demand is raised against the representative assessee or against the beneficiary direct.
FAQs on Section 304 of Income Tax Act 2025
Who is considered a representative assessee under Section 304?
A representative assessee is a person who is responsible for income belonging to someone else and is liable to perform tax-related duties for that income under this Act.
What liabilities does a representative assessee have under Section 304(1)?
A representative assessee is subject to the same duties, responsibilities, and liabilities as if the income were received or accrued to them beneficially. They are liable to assessment and other proceedings in their own name for that income in a representative capacity.
How is tax recovered from a representative assessee under Section 304(1)(b)?
Tax is levied upon and recovered from the representative assessee in the same manner and to the same extent as it would be from the person they represent.
Can a person be assessed both as a representative assessee and under other provisions of the Act for the same income?
No. As per Section 304(2), a person assessed as a representative assessee for an income cannot be assessed for the same income under any other provision of the Act.
Can the Assessing Officer directly assess the person whose income is represented?
Yes. Under Section 304(3), the Assessing Officer may directly assess or recover tax from the person on whose behalf the income is receivable, regardless of other provisions in this Chapter.
How is the beneficiary’s share of taxable income calculated when only part of a trust’s income is chargeable?
Section 304(4) provides the formula: A/B × C, where A is the chargeable part of the trust’s income, B is the total income of the trust, and C is the income receivable by the beneficiary.
What powers does the Assessing Officer have against the property of a representative assessee?
As per Section 304(5), the Assessing Officer can use the same remedies against any property held or controlled by the representative assessee as would apply to the actual liable person’s property, whether the tax demand is raised against the representative or the beneficiary.
Does the representative assessee act in a personal or representative capacity during assessment?
All proceedings are deemed to be conducted in their representative capacity only, as specified in Section 304(1)(a).
Is there any exception where the representative assessee is not primarily liable?
Yes. Section 304(3) allows the Assessing Officer to bypass the representative assessee and directly assess or recover from the actual beneficiary.
Does the liability under Section 304 override the rights of the beneficiary?
No. The representative assessee is a conduit for compliance and liability under tax laws, without affecting the beneficiary’s ownership or entitlement to income.
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