Section 304: liability of a representative assessee

Same duties as if the income were the representative's own

Every representative assessee, as regards the income for which he is a representative assessee, is subject to the same duties, responsibilities and liabilities as if that income were received by or accrued to him beneficially. For this purpose: he is liable to assessment in his own name for that income, and any such assessment is deemed made upon him in his representative capacity only; and the tax on that income is 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 he represents.

If a person is assessable under this Chapter in the capacity of a representative assessee for any income, he cannot, for that same income, be assessed under any other provision of the Act.

The Assessing Officer can still go directly to the person represented

Irrespective of the provisions of this Chapter, the Assessing Officer may directly assess the person on whose behalf or for whose benefit the income is receivable, or may recover the tax payable on that income from such person directly.

Apportioning a trust's income when only part is chargeable

If only part of a trust's income is chargeable under the Act, the proportion of income receivable by a beneficiary from the trust that is attributable to the chargeable part is worked out using the formula: (chargeable part of the trust's income ÷ whole income of the trust) × income receivable by the beneficiary from the trust.

Recovery against the representative's property

The Assessing Officer has the same remedies against all property of any kind vested in, or under the control or management of, a representative assessee, as he would have against the property of any person liable to pay tax - whether the demand is raised against the representative assessee or against the beneficiary directly.

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