Income Tax Act, 2025
Section 8: Ins. by Act 32 of 2003, s. 67 (w.e.f. 12003).
8. Ins. by Act 32 of 2003, s. 67 (w.e.f. 12003).
614
CHAPTER XV
LIABILITY IN SPECIAL CASES
A.—Legal representatives
159. Legal representatives.—(1) Where a person dies, his legal representative shall be liable to pay
any sum which the deceased would have been liable to pay if he had not died, in the like manner and to
the same extent as the deceased.
(2) For the purpose of making an assessment (including an assessment, reassessment or
recomputation under section 147) of the income of the deceased and for the purpose of levying any sum
in the hands of the legal representative in accordance with the provisions of sub-section (1),—
(a) any proceeding taken against the deceased before his death shall be deemed to have been
taken against the legal representative and may be continued against the legal representative from the
stage at which it stood on the date of the death of the deceased;
(b) any proceeding which could have been taken against the deceased if he had survived, may be
taken against the legal representative; and
(c) all the provisions of this Act shall apply accordingly.
(3) The legal representative of the deceased shall, for the purposes of this Act, be deemed to be an
assessee.
(4) Every legal representative shall be personally liable for any tax payable by him in his capacity as
legal representative if, while his liability for tax remains undischarged, he creates a charge on or disposes
of or parts with any assets of the estate of the deceased, which are in, or may come into, his possession,
but such liability shall be limited to the value of the asset so charged, disposed of or parted with.
(5) The provisions of sub-section (2) of section 161, section 162, and section 167, shall, so far as may
be and to the extent to which they are not inconsistent with the provisions of this section, apply in relation
to a legal representative.
(6) The liability of a legal representative under this section shall, subject to the provisions of subsection (4) and sub-section (5), be limited to the extent to which the estate is capable of meeting the
liability.
B.—Representative assessees - General provisions
160. Representative assessee.—(1) For the purposes of this Act, “representative assessee” means—
(i) in respect of the income of a non-resident specified in 1*** sub-section (1) of section 9, the
agent of the non-resident, including a person who is treated as an agent under section 163;
(ii) in respect of the income of a minor, lunatic or idiot, the guardian or manager who is entitled
to receive or is in receipt of such income on behalf of such minor, lunatic or idiot;
(iii) in respect of income which the Court of Wards, the Administrator-General, the Official
Trustee or any receiver or manager (including any person, whatever his designation, who in fact
manages property on behalf of another) appointed by or under any order of a court, receives or is
entitled to receive, on behalf or for the benefit of any person, such Court of Wards, AdministratorGeneral, Official Trustee, receiver or manager;
1. The words, brackets and figure “clause (i) of” omitted by Act 66 of 1976, s. 26 (w.e.f. 11976).
615
(iv) in respect of income which a trustee appointed under a trust declared by a duly executed
instrument in writing whether testamentary or otherwise [including any wakf deed which is valid
under the Mussalman Wakf Validating Act, 1913 (6 of 1913),] receives or is entitled to receive on
behalf or for the benefit of any person, such trustee or trustees;
1[(v) in respect of income which a trustee appointed under an oral trust receives or is entitled to
receive on behalf or for the benefit of any person, such trustee or trustees.
Explanation 1.—A trust which is not declared by a duly executed instrument in writing [including
any wakf deed which is valid under the Mussalman Wakf Validating Act, 1913 (6 of 1913),] shall be
deemed, for the purposes of clause (iv), to be a trust declared by a duly executed instrument in writing if a
statement in writing, signed by the trustee or trustees, setting out the purpose or purposes of the trust,
particulars as to the trustee or trustees, the beneficiary or beneficiaries and the trust property, is forwarded
to the 2[Assessing Officer],—
(i) where the trust has been declared before the 1st day of June, 1981, within a period of three
months from that day; and
(ii) in any other case, within three months from the date of declaration of the trust.
Explanation 2.—For the purposes of clause (v), “oral trust” means a trust which is not declared by a
duly executed instrument in writing [including any wakf deed which is valid under the Mussalman Wakf
Validating Act, 1913 (6 of 1913),] and which is not deemed under Explanation 1 to be a trust declared by
a duly executed instrument in writing.]
(2) Every representative assessee shall be deemed to be an assessee for the purposes of this Act.
161. Liability of representative assessee.—(1) Every representative assessee, as regards the income
in respect of which he is a representative assessee, shall be subject to the same duties, responsibilities and
liabilities as if the income were income received by or accruing to or in favour of him beneficially, and
shall be liable to assessment in his own name in respect of that income; but any such assessment shall be
deemed to be made upon him in his representative capacity only, and the tax shall, subject to the other
provisions contained in this Chapter, be levied upon and recovered from him in like manner and to the
same extent as it would be leviable upon and recoverable from the person represented by him.
3[(1A) Notwithstanding anything contained in sub-section (1), where any income in respect of which
the person mentioned in clause (iv) of sub-section (1) of section 160 is liable as representative assessee
consists of, or includes, profits and gains of business, tax shall be charged on the whole of the income in
respect of which such person is so liable at the maximum marginal rate:
Provided that the provisions of this sub-section shall not apply where such profits and gains are
receivable under a trust declared by any person by will exclusively for the benefit of any relative
dependent on him for support and maintenance, and such trust is the only trust so declared by him.
4* * * * *]
(2) Where any person is, in respect of any income, assessable under this Chapter in the capacity of a
representative assessee, he shall not, in respect of that income, be assessed under any other provision of
this Act.
Where a person dies, his legal representative shall be liable to pay
any sum which the deceased would have been liable to pay if he had not died, in the like manner and to
the same extent as the deceased.
For the purpose of making an assessment (including an assessment, reassessment or
recomputation under section 147) of the income of the deceased and for the purpose of levying any sum
in the hands of the legal representative in accordance with the provisions of sub-section
any proceeding taken against the deceased before his death shall be deemed to have been
taken against the legal representative and may be continued against the legal representative from the
stage at which it stood on the date of the death of the deceased;
any proceeding which could have been taken against the deceased if he had survived, may be
taken against the legal representative; and
all the provisions of this Act shall apply accordingly.
The legal representative of the deceased shall, for the purposes of this Act, be deemed to be an
assessee.
Every legal representative shall be personally liable for any tax payable by him in his capacity as
legal representative if, while his liability for tax remains undischarged, he creates a charge on or disposes
of or parts with any assets of the estate of the deceased, which are in, or may come into, his possession,
but such liability shall be limited to the value of the asset so charged, disposed of or parted with.
The provisions of sub-section
of section 161, section 162, and section 167, shall, so far as may
be and to the extent to which they are not inconsistent with the provisions of this section, apply in relation
to a legal representative.
The liability of a legal representative under this section shall, subject to the provisions of subsection
and sub-section
For the purposes of this Act, “representative assessee” means—
in respect of the income of a non-resident specified in 1*** sub-section
of section 9, the
agent of the non-resident, including a person who is treated as an agent under section 163;
in respect of the income of a minor, lunatic or idiot, the guardian or manager who is entitled
to receive or is in receipt of such income on behalf of such minor, lunatic or idiot;
in respect of income which the Court of Wards, the Administrator-General, the Official
Trustee or any receiver or manager (including any person, whatever his designation, who in fact
manages property on behalf of another) appointed by or under any order of a court, receives or is
entitled to receive, on behalf or for the benefit of any person, such Court of Wards, AdministratorGeneral, Official Trustee, receiver or manager;
1. The words, brackets and figure “clause
of” omitted by Act 66 of 1976, s. 26 (w.e.f. 11976).
615
in respect of income which a trustee appointed under a trust declared by a duly executed
instrument in writing whether testamentary or otherwise [including any wakf deed which is valid
under the Mussalman Wakf Validating Act, 1913 (6 of 1913),] receives or is entitled to receive on
behalf or for the benefit of any person, such trustee or trustees;
1[
in respect of income which a trustee appointed under an oral trust receives or is entitled to
receive on behalf or for the benefit of any person, such trustee or trustees.
Explanation 1.—A trust which is not declared by a duly executed instrument in writing [including
any wakf deed which is valid under the Mussalman Wakf Validating Act, 1913 (6 of 1913),] shall be
deemed, for the purposes of clause
where the trust has been declared before the 1st day of June, 1981, within a period of three
months from that day; and
in any other case, within three months from the date of declaration of the trust.
Explanation 2.—For the purposes of clause
Every representative assessee shall be deemed to be an assessee for the purposes of this Act.
161. Liability of representative assessee.—
Every representative assessee, as regards the income
in respect of which he is a representative assessee, shall be subject to the same duties, responsibilities and
liabilities as if the income were income received by or accruing to or in favour of him beneficially, and
shall be liable to assessment in his own name in respect of that income; but any such assessment shall be
deemed to be made upon him in his representative capacity only, and the tax shall, subject to the other
provisions contained in this Chapter, be levied upon and recovered from him in like manner and to the
same extent as it would be leviable upon and recoverable from the person represented by him.
3[
Notwithstanding anything contained in sub-section
of sub-section
of section 160 is liable as representative assessee
consists of, or includes, profits and gains of business, tax shall be charged on the whole of the income in
respect of which such person is so liable at the maximum marginal rate:
Provided that the provisions of this sub-section shall not apply where such profits and gains are
receivable under a trust declared by any person by will exclusively for the benefit of any relative
dependent on him for support and maintenance, and such trust is the only trust so declared by him.
4* * * * *]
Where any person is, in respect of any income, assessable under this Chapter in the capacity of a
representative assessee, he shall not, in respect of that income, be assessed under any other provision of
this Act.