Section 305
Section 305: right of a representative assessee to recover tax paid
Section 305 protects a representative assessee financially: if they pay tax on behalf of someone else, they can recover it from that person, or hold back enough money already in their hands to cover the liability - with a formal certificate route for resolving disputes over how much to hold back.
This explanation is AI-assisted and pending review by our CA/CS team. It is general information, not professional advice - always cross-check against the bare law text above or talk to our tax team for guidance specific to your situation.
Recovering or retaining tax already paid
A representative assessee who, in that capacity, pays any sum under the Act is entitled to recover the amount from the person on whose behalf it was paid, or to retain out of any money in his possession (or that comes to him) in his representative capacity, an amount equal to the sum paid.
Retaining money in advance for an anticipated liability
A representative assessee, or a person who anticipates being assessed as one, may retain out of any money payable by him to the person on whose behalf he is liable to pay tax (called "the principal") a sum equal to his estimated liability under this Chapter.
Resolving disagreement through an Assessing Officer's certificate
If the principal and the representative assessee (or prospective representative assessee) disagree on how much should be retained, the representative assessee or person may obtain a certificate from the Assessing Officer stating the amount to be retained pending final settlement of the liability - that certificate is his warrant for retaining that amount.
At final settlement, the amount recoverable from the representative assessee or person cannot exceed the amount stated in the certificate, except to the extent he then holds additional assets of the principal.
Frequently asked questions
Can a representative assessee get money back after paying someone else's tax?
Yes - Section 305(1) lets him recover the sum paid from the person on whose behalf it was paid, or retain an equal amount out of any money of that person already in, or coming into, his hands.
What if the representative assessee and the principal disagree on how much to withhold?
Either of them can approach the Assessing Officer under Section 305(3) for a certificate fixing the amount to be retained pending final settlement; that certificate then caps the amount recoverable at final settlement, subject to any additional assets of the principal the representative may be holding at that time.
Related sections
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Talk to our tax team about representative assessee liabilityLast updated 9 September 2026