Section 161 - Liability of representative assessee

Section 160: Representative assessee taxed as if income were theirs; business profits taxed at maximum marginal rate

A representative assessee is treated, for the income he represents, as if that income were beneficially his: he bears the same duties, responsibilities and liabilities and is assessed in his own name but in a representative capacity, with tax levied and recovered as if on the person represented. Where the person described in clause (iv) of section 160 is a representative assessee and the income includes business profits, tax is charged on the whole income at the maximum marginal rate, except for a will-declared trust solely for dependent relatives. Such income shall not be assessed under any other provision.