Income Tax Act, 2025
Section 4: The Explanation omitted by Act 49 of 1991, s. 49 (w.e.f. 11991).
4. The Explanation omitted by Act 49 of 1991, s. 49 (w.e.f. 11991).
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162. Right of representative assessee to recover tax paid.—(1) Every representative assessee who,
as such, pays any sum under this Act, shall be entitled to recover the sum so paid from the person on
whose behalf it is paid, or to retain out of any moneys that may be in his possession or may come to him
in his representative capacity, an amount equal to the sum so paid.
(2) Any representative assessee, or any person who apprehends that he may be assessed as a
representative assessee, may retain out of any money payable by him to the person on whose behalf he is
liable to pay tax (hereinafter in this section referred to as the principal), a sum equal to his estimated
liability under this Chapter, and in the event of any disagreement between the principal and such
representative assessee or person as to the amount to be so retained, such representative assessee or
person may secure from the 1[Assessing Officer] a certificate stating the amount to be so retained pending
final settlement of the liability, and the certificate so obtained shall be his warrant for retaining that
amount.
(3) The amount recoverable from such representative assessee or person at the time of final settlement
shall not exceed the amount specified in such certificate, except to the extent to which such representative
assessee or person may at such time have in his hands additional assets of the principal.
C.—Representative assessees—Special cases
163. Who may be regarded as agent.—(1) For the purposes of this Act, “agent”, in relation to a
non-resident, includes any person in India—
(a) who is employed by or on behalf of the non-resident; or
(b) who has any business connection with the non-resident; or
(c) from or through whom the non-resident is in receipt of any income, whether directly or
indirectly; or
(d) who is the trustee of the non-resident;
and includes also any other person who, whether a resident or non-resident, has acquired by means of a
transfer, a capital asset in India:
Provided that a broker in India who, in respect of any transactions, does not deal directly with or on
behalf of a non-resident principal but deals with or through a non-resident broker shall not be deemed to
be an agent under this section in respect of such transactions, if the following conditions are fulfilled,
namely:—
(i) the transactions are carried on in the ordinary course of business through the first-mentioned
broker; and
(ii) the non-resident broker is carrying on such transactions in the ordinary course of his business
and not as a principal.
2[Explanation.—For the purposes of this sub-section, the expression “business connection” shall have
the meaning assigned to it in Explanation 2 to clause (i) of sub-section (1) of section 9 of this Act.]
(2) No person shall be treated as the agent of a non-resident unless he has had an opportunity of being
heard by the 1[Assessing Officer] as to his liability to be treated as such.
Every representative assessee who,
as such, pays any sum under this Act, shall be entitled to recover the sum so paid from the person on
whose behalf it is paid, or to retain out of any moneys that may be in his possession or may come to him
in his representative capacity, an amount equal to the sum so paid.
Any representative assessee, or any person who apprehends that he may be assessed as a
representative assessee, may retain out of any money payable by him to the person on whose behalf he is
liable to pay tax (hereinafter in this section referred to as the principal), a sum equal to his estimated
liability under this Chapter, and in the event of any disagreement between the principal and such
representative assessee or person as to the amount to be so retained, such representative assessee or
person may secure from the 1[Assessing Officer] a certificate stating the amount to be so retained pending
final settlement of the liability, and the certificate so obtained shall be his warrant for retaining that
amount.
The amount recoverable from such representative assessee or person at the time of final settlement
shall not exceed the amount specified in such certificate, except to the extent to which such representative
assessee or person may at such time have in his hands additional assets of the principal.
C.—Representative assessees—Special cases
163. Who may be regarded as agent.—
For the purposes of this Act, “agent”, in relation to a
non-resident, includes any person in India—
who is employed by or on behalf of the non-resident; or
who has any business connection with the non-resident; or
from or through whom the non-resident is in receipt of any income, whether directly or
indirectly; or
who is the trustee of the non-resident;
and includes also any other person who, whether a resident or non-resident, has acquired by means of a
transfer, a capital asset in India:
Provided that a broker in India who, in respect of any transactions, does not deal directly with or on
behalf of a non-resident principal but deals with or through a non-resident broker shall not be deemed to
be an agent under this section in respect of such transactions, if the following conditions are fulfilled,
namely:—
the transactions are carried on in the ordinary course of business through the first-mentioned
broker; and
the non-resident broker is carrying on such transactions in the ordinary course of his business
and not as a principal.
2[Explanation.—For the purposes of this sub-section, the expression “business connection” shall have
the meaning assigned to it in Explanation 2 to clause
of sub-section
of section 9 of this Act.]
No person shall be treated as the agent of a non-resident unless he has had an opportunity of being
heard by the 1[Assessing Officer] as to his liability to be treated as such.