Chapter XVII - Special Provisions Relating to Certain Persons
Section 303
Section 303: who is a representative assessee
Section 303 defines "representative assessee" - a person who is taxed on income belonging to someone else because they receive or manage it on that other person's behalf. It lists five categories, from agents of non-residents to trustees of oral trusts.
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This article is for general information. Refer to the Income-tax Act, 2025 as amended by the Finance Act, 2026 and the Taxation and Other Laws (Amendment) Act, 2026 for the official provisions. If you need professional advice for your situation, contact Bizeneed.
Statutory text
Bare law
(1) For the purposes of this Act, “representative assessee” means—
(a) in respect of the income of a non-resident specified in section 9, the agent of the non-resident, including a person who is treated as an agent under section 306;
(b) in respect of the income of a minor or a person who is mentally ill or of unsound mind, the guardian or manager who is entitled to receive or is in receipt of such income on behalf of such minor or a person who is mentally ill or of unsound mind;
(c) in respect of income which the Court of Wards, the Administrator-General, the Official Trustee or any receiver or manager (including any person, whatever his designation, who in fact manages property on behalf of another) appointed by or under any order of a court, receives or is entitled to receive, on behalf or for the benefit of any person, such Court of Wards, Administrator-General, Official Trustee, receiver or manager;
(d) in respect of income which a trustee appointed under a trust declared by a duly executed instrument in writing whether testamentary or otherwise (including any wakf deed which is valid under the Mussalman Wakf Validating Act, 1913) receives or is entitled to receive on behalf or for the benefit of any person, such trustee or trustees;
(e) in respect of income which a trustee appointed under an oral trust receives or is entitled to receive on behalf or for the benefit of any person, such trustee or trustees.
(2) For the purposes of sub-section (1)(d), a trust which is not declared by a duly executed instrument in writing (including any wakf deed which is valid under the Mussalman Wakf Validating Act, 1913) shall be deemed to be a trust declared by a duly executed instrument in writing if a statement in writing, signed by the trustee or trustees, setting out the purpose or purposes of the trust, particulars as to the trustee or trustees, the beneficiary or beneficiaries and the trust property, is forwarded to the Assessing Officer,—
(a) where the trust has been declared before the 1st June, 1981, within three months from that day; and
(b) in any other case, within three months from the date of declaration of the trust.
(3) For the purposes of sub-section (1)(e), “oral trust” means a trust which is not declared by a duly executed instrument in writing (including any wakf deed which is valid under the Mussalman Wakf Validating Act, 1913) and which is not deemed under sub-section (2) to be a trust declared by a duly executed instrument in writing.
(4) Every representative assessee shall be deemed to be an assessee for the purposes of this Act.
Introduction
Representative status is tied to particular income and the role a person has in receiving or managing it. Section 303 identifies five categories and deems each representative assessee to be an assessee for the Act.
Key takeaways
Five statutory categories
The section covers a non-resident's agent, a guardian or manager for specified persons, court-appointed property managers, trustees under written instruments and trustees of oral trusts.
Trust form matters
A trust lacking a duly executed written instrument may still be deemed written if the signed statement and timing requirements in Section 303(2) are met; otherwise the oral-trust definition may apply.
Representative is an assessee
Section 303(4) deems every representative assessee to be an assessee under the Act.
The five categories of representative assessee
For the purposes of the Act, "representative assessee" means:
- In respect of the income of a non-resident specified in section 9, the agent of the non-resident, including a person treated as an agent under section 306.
- In respect of the income of a minor or a person who is mentally ill or of unsound mind, the guardian or manager who is entitled to receive, or is in receipt of, such income on their behalf.
- In respect of income received or receivable by the Court of Wards, the Administrator-General, the Official Trustee, or any receiver or manager (including anyone who in fact manages property on another's behalf) appointed by or under a court order, on behalf or for the benefit of any person - that Court of Wards, Administrator-General, Official Trustee, receiver or manager.
- In respect of income received or receivable by a trustee appointed under a trust declared by a duly executed instrument in writing, whether testamentary or otherwise (including a wakf deed valid under the Mussalman Wakf Validating Act, 1913), on behalf or for the benefit of any person - that trustee or trustees.
- In respect of income received or receivable by a trustee appointed under an oral trust, on behalf or for the benefit of any person - that trustee or trustees.
When an undocumented trust still counts as "written"
A trust not declared by a duly executed instrument in writing (including a valid wakf deed) is still deemed to be a trust declared by a duly executed instrument in writing if a written statement, signed by the trustee(s), setting out the trust's purpose, particulars of the trustee(s), the beneficiary/beneficiaries and the trust property, is forwarded to the Assessing Officer - within three months of 1st June, 1981, if the trust was declared before that date, or within three months of the date of declaration in any other case.
"Oral trust" defined
For the purposes of the category above, "oral trust" means a trust that is not declared by a duly executed instrument in writing (including a valid wakf deed) and that is not deemed under the previous provision to be one declared by a duly executed instrument in writing.
Deemed assessee status
Every representative assessee is deemed to be an assessee for the purposes of the Act.
Step-by-step flow for identifying a representative assessee under Section 303
- 1
Whose income is it?
Identify the person on whose behalf, or for whose benefit, the income is received or receivable.
- 2
Is it income of a non-resident specified in Section 9, or of a minor or a person who is mentally ill or of unsound mind?
For a non-resident, the agent (including a person treated as agent under Section 306) is the representative assessee (Section 303(1)(a)). For a minor or such a person, it is the guardian or manager entitled to receive or receiving the income (Section 303(1)(b)).
- Yes: That agent, guardian or manager is the representative assessee.
- No: Go to the next step.
- 3
Is it received by a Court of Wards, Administrator-General, Official Trustee, or a court-appointed receiver or manager?
That body or person is the representative assessee (Section 303(1)(c)). A manager includes anyone who in fact manages property for another under a court order.
- Yes: That body or person is the representative assessee.
- No: Go to the next step.
- 4
Is the income received by a trustee under a written trust?
A trust declared by a duly executed instrument in writing, including a valid wakf deed, falls in Section 303(1)(d).
- Yes, written instrument: The trustee is the representative assessee under Section 303(1)(d).
- No written instrument: Go to the next step.
- 5
Was a signed statement of the trust forwarded to the Assessing Officer in time?
The statement must set out the purposes, trustees, beneficiaries and trust property, within three months of declaration (or, for a trust declared before 1 June 1981, within three months of that day).
- Yes: The trust is deemed written (Section 303(2)); the trustee falls in Section 303(1)(d).
- No: It is an oral trust (Section 303(3)); the trustee falls in Section 303(1)(e). In every case the representative assessee is deemed an assessee (Section 303(4)).
Practical checklist
Do
- Identify which statutory representative-assessee category applies to the income.
- Keep the trust instrument, court order, agency record or other document establishing that capacity.
Avoid
- Assume every person receiving income for someone else falls in the same representative category.
Illustrative example
Worked example: an unwritten family trust
Hypothetical facts (illustration only, not a real taxpayer): Mrs. Shah orally declares a trust on 1 August 2026 for her grandchildren, with her brother as trustee. The trust receives rent. The brother signs a statement setting out the trust's purposes, the trustee, the beneficiaries and the trust property, and sends it to the Assessing Officer on 20 October 2026.
No instrument
There is no duly executed written instrument, so Section 303(1)(d) is not met directly.
Time limit
Three months from the declaration on 1 August 2026 runs to 1 November 2026. The statement sent on 20 October 2026 is within time.
Deemed written
Under Section 303(2), the trust is deemed to be declared by a written instrument, so the brother is the representative assessee under Section 303(1)(d).
Contrast
If the statement had been sent in December 2026, the trust would be an oral trust under Section 303(3), and Section 308 would charge the income at the maximum marginal rate.
Outcome
- The brother is the representative assessee under Section 303(1)(d) and is deemed an assessee under Section 303(4).
- A timely signed statement is what keeps the trust out of the oral-trust category.
Frequently asked questions
Does a guardian of a minor count as a representative assessee?
Yes - Section 303(1)(b) treats the guardian or manager who is entitled to receive, or actually receives, a minor's (or a mentally ill or unsound-mind person's) income on their behalf as the representative assessee for that income.
Can a trust that was never put in writing still be treated as a written trust?
Yes, if a signed written statement covering the trust's purpose, the trustee(s), beneficiary/beneficiaries and trust property is forwarded to the Assessing Officer within the time limit in Section 303(2) - otherwise it remains an "oral trust" under Section 303(3).
Is a representative assessee treated as a taxpayer in their own right?
Yes - Section 303(4) deems every representative assessee to be an assessee for the purposes of the Act.
Need help applying this provision to your situation?
Talk to our tax team about representative assessee statusLast updated 9 October 2026