What is a representative assessee?
A Representative Assessee is someone who acts as another person's legal representative under the Income Tax Act. Representative Assessees are called in when the person obligated to pay taxes is a non-resident, a minor, a lunatic, or for any other reason. Such people cannot file their own income taxes and appoint a guardian or agent as a Representative Assessee.
Uses of representative assessees
An assessee's primary responsibility is to pay taxes and file income tax returns on time for each fiscal year. When a user fails to file income tax returns on time, an inquiry is sent to the user as to why the returns were not filed or were filed late. When an assessee receives a notice like this from the tax department, he or she should file the returns as soon as possible. Following receipt of the notice from the IT Department, an assessee must file income tax returns for the income earned during the applicable assessment year. The assessee must provide information relevant to their income tax returns within 30 days of the date of issuance of the notice, not the date of receipt of the notice.
Salient features of representative assessees
- The Income Tax Act states that every representative taxpayer is liable for assessment in their name for the revenue for which they are found to be a representative assessee.
- Tax will be levied and recovered from them in the same manner and to the same extent as it is set and recovered from the principal assessee.
- The liability of the representative assessee is personal and is contingent on having any cash or possession.
- Despite the fact that the money was received in their favour, the representative assessee is responsible for all obligations, duties, and liabilities.
- The liability of a representative assessee can be reduced by obtaining a certificate from the Assessing Officer stating their anticipated obligation.
- The responsibilities, liabilities, and obligations of the principal assessee and the representative assessee are the same. As a result, the representative assessee is also in charge of accounting and auditing the books of accounts.
- The right to recover tax paid refers to the ability to collect tax already paid on behalf of the primary assessee and reserve the amount expected to be paid in the future on behalf of the primary assessee.
- If the principal and representative assessee disagree on the amount to be withheld, the representative assessee has the right to obtain a certificate from the Assessing Officer for the amount until the liability is finally settled.
- A representative assessee may appeal the Assessing Officer's decision or any other order.
