Section 161 of the 1961 Act → Section 304 of the 2025 Act
Liability of a representative assessee.
Quick answer
Section 161 of the Income-tax Act, 1961 corresponds to Section 304 of the Income-tax Act, 2025. Relationship: Revised. Correspondence verified against both Acts.
How it works
The representative is liable in the same way, and to the same extent, as the person represented would be.
Example
The trustee pays the tax each investor would have paid on their share of the fund’s income.
What you need to do
Category III fund: maintain investor-wise records to apply this.
What changed?
- Read the complete new provision, including its conditions, exceptions and related provisions, when applying it.
The two texts, side by side
1961 · Section 161161. (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 …
2025 · Section 304304. (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 for this purpose,— (a) the representative assessee shall be liable to assessment in his own name in respect of that income and any such assessment shall be deemed to be made upon him in his representative capacity only; and (b) the tax on such income shall, subject to the other provisions contained in this Chapter, be levied upon and recovered from the representative …
Excerpts end with … where the provision continues. Last reviewed 24 October 2026.
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CS Prashant Kumar
Company Secretary & Compliance Officer
Global Horizons Capital Advisors (IFSC) Private Limited — an IFSCA-licensed investment banker
Published in The Chartered Accountant (Jun 2025, Jan 2025, Mar 2024) and Chartered Secretary (Aug 2023)
Prashant Kumar is a seasoned Company Secretary and corporate governance strategist with more than 13 years of experience advising large corporates, promoter-led groups and global businesses on compliance, regulatory risk and board governance. In GIFT IFSC, the IFSCA regime is his day job rather than a research topic.