written by | April 27, 2022

Representative Assessee - Assessee in Income Tax

Usually, a person's income is taxed. However, in some cases, some other person might be held liable for tax payment and complying with the provisions of the Income Tax Act. Even though that person may not have a beneficial interest in the income, it may happen. Such a person is called a representative assessee. This person is only a legal representative of another person. The representative assessee also comes in as a minor or non-resident, and these types of people cannot file income tax returns.

Did you know?

Anyone who chooses to be a representative assessee assumes responsibility for the original taxpayer. 

Who is a Representative Assessee?

It is a person who acts as a legal representative on behalf of another person under the Income Tax Act under Section 160 (1)(i). 

Example

Consider A's situation (Principal Assessee). A has been living in another country for the past seven years. They do, however, earn rent for two homes they own in India. To file taxes in India, they enlist the services of a relative, Z (representative assessee). Z serves as a representative assessee in this case. As the guardian of the property and representative of A, Z will be asked to supply the relevant documents if the assessing officer intends to investigate the tax filing.

Also Read: Assessment or Reassessment Notice of Income Tax Act

Procedure to Add Representative Assessee

There are numerous steps to add a representative assessee to the Income Tax Portal. These steps are given as follows-

  1. The user needs to visit the official website of the Income Tax Portal, i.e. https://www.incometaxindiaefiling.gov.in.
  2. On the home page, the user must click on login from the drop-down menu and provide information such as date of birth, Password, User ID, and the Captcha code.
  3. Once the user logs in, they need to go to My Account. There will be an option under it to select Add/Register as a Representative in the drop-down menu. The user needs to click on that option.
  4. The user must then click the tab New Request from the drop-down menu and select the module ‘Add another person representing on your behalf’ under Request Type. After that, click on the proceed button.
  5. Once you click on the proceed button, they will ask why and you choose one of the three explanations.
  6. Enter the representative information and click on the submit button.
  7. A PIN will be generated, which will be sent to the user s mobile number and email id. After entering the PIN, you need to click on validate.
  8. The representative will be notified on their mobile number and email id. They need to verify it from the worklist.

Procedure to Register as Representative Assessee

The following is the procedure to register as a representative assessee. The users must follow the following steps for becoming a representative assessee of another taxpayer -

  1. The user needs to visit the official website of the Income Tax Portal, i.e. https://www.incometaxindiaefiling.gov.in.
  2. On the official website, there will be an option to log in. For doing the same, date of birth, captcha code, User ID, and password must be entered.
  3. There will be an option to add or register under My Account in the drop-down menu.
  4. Under the request, ‘New Request” should be selected from the drop-down. Under it, there will be an option to add another person to represent you. Click on that option and press the proceed button.
  5. The user needs to attach the necessary documents along with it. Click on submit after doing the same.
  6. After completing all processes, a request will be sent to the E-filing administrator, who will either accept or reject the request following verification.

Duties, Responsibilities, and Roles of Representative Assessee

The principal responsibility of an assessee is to pay taxes and file income tax returns on time for each financial year. When a user fails to file income tax returns on time, a notification inquiry is sent regarding why the returns were not filed or filed late. When an assessee receives such a notice from the tax department, they should file the returns as soon as possible and follow the instructions below:

  • Following receipt of the notice from the IT Department, an assessee should file income tax returns for the appropriate assessment year's income.
  • The assessee must provide details relevant to their income returns within 30 days of the date of issuance of the notice, not the date on which the Assessee receives the notice.

The obligations of a representative assessee, which are the same as of a normal assessee, are summarised above.

Liabilities of Representative Assessee

  1. According to the Income Tax Act, every representative taxpayer is liable for assessment in their name for the revenue they are found to be a representative assessee.
  2. Tax will be imposed and recovered from them similarly and to the same extent as levied and reclaimed from the principle assessee.
  3. The representative assessee's liability is personal and is contingent on having any cash or possession.
  4. Although the money in question was advantageously received in their favour, the representative assessee is liable for all obligations, duties, and liabilities.
  5. A representative assessee's liability can be reduced by getting a certificate from the Assessing Officer stating their anticipated obligation.
  6. The principal assessee and the representative assessee have the same responsibilities, liabilities, and obligations. Hence, the representative assessee is also responsible for the accounting and getting the books of accounts audited.

Also Read: GST audit- When Are You Likely To Be Audited By Tax Officers?

Rights of Representative Assessee

  • The right to collect tax already paid on account of the primary assessee and reserve the amount anticipated to be paid in the hereafter on account of the primary assessee is known as the right to recover tax paid.
  • If the principal and representative assessee dispute the amount to be withheld, the representative assessee has the right to obtain a certificate from the Assessing Officer for the amount till the ultimate settlement of the liability.
  • A representative assessee has the right to challenge the Assessing Officer or any other order.

Though the concept of a representative assessee appears simple, there are various challenges when it comes to putting it into effect, particularly in the case of a non-resident agent and trustees.

Furthermore, if the representative assessee is related to many NRIs, he will be assessed for each one.

Conclusion

Section 160 (1)(i) of the Income Tax Act contains the laws about representative assessees. Representative assessees are used when assessing a deceased or non-resident taxpayer under the terms of Income Tax law.

We hope that this article has explained to you in detail the procedure to appoint a 

representative assessee and the rights, duties, roles, responsibilities, and liabilities of such an assessee.
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FAQs

Q: Give some examples of the representative assessee.

Ans:

Some examples are as follows

Various Types.

Who is eligible to register as a "Representative"?

In a state of mental incapacitation

The person's guardian or manager is in charge of their affairs.

No longer alive (Legal heir)

The deceased person's legal heir

Minor

Guardian / Manager in charge of such person's affairs

Trust in Writing

Trustee

Oral Trust

Trustee

Non-Resident

A person employed by or on behalf of the non-resident Person with a business relationship with the non-resident Person who receives money from or through the non-resident, whether directly or indirectly out

Court of wards

Manager managing the property / Office Trustee / Administrator General / Receiver

Q: What is the website for assigning representative assessee?

Ans:

www.incometaxindiaefiling.gov.in is the website for assigning representative assessee.

Q: Which section of Income Tax governs the concept of the representative assessee?

Ans:

Section 160 of the Income Tax Act governs the idea of the representative assessee.

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