Section 305 — Right of representative assessee to recover tax paid
Old Act equivalent: 12AB of IT Act 1961 Sub-part: Charitable Trusts and Institutions
Statutory Text
- (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 306 referred to as the principal), a sum equal to his estimated liability under this Chapter. (3) In the event of any disagreement between such principal and such represen - tative assessee or person with regard to the amount to be so retained as referred to in sub-section (2), such representative assessee or person may secure from the 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. (4) 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. - —Representative assessees—Special cases Who may be regarded as agent.
- (1) For the purposes of this Act, “agent”, in relation to a non-resident, includes— ( a) any person in India— ( i) who is employed by or on behalf of the non-resident; or ( ii) who has any business connection with the non-resident; or ( iii) from or through whom the non-resident is in receipt of any income, whether directly or indirectly; or ( iv) who is the trustee of the non-resident; ( b) any other person who, whether a resident or non-resident, has acquired by means of a transfer, a capital asset in India. (2) 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:— ( a) the transactions are carried on in the ordinary course of business through the first-mentioned broker; and ( b) the non-resident broker is carrying on such transactions in the ordinary course of his business and not as a principal. (3) A person shall not be treated as the agent of a non-resident unless he has had an opportunity of being heard by the Assessing Officer as to his liability to be treated as such. (4) For the purposes of this section, “business connection” shall have the meaning assigned to it in section 9(9)( a). Charge of tax where share of beneficiaries unknown.
Provisos
None.
Explanations
None.
Tables
None.
Cross-References
To be updated.
Notes
- Verification status: pending
- Auto-generated from IT Act 2025 PDF on 2026-04-13