Comparison of section 304 "Liability of representative assessee." between the Income-Tax Act, 2025 (as passed) and the Income-Tax Bill, 2025 (as originally introduced)

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....ects taxpayers (trusts, representatives, beneficiaries) and tax authorities; the effective date is not stated in the documents. Background & Scope Clause/Section 304 - Liability of representative assessee (Representative assesses-General provisions) within the Income Tax Bill/Act, 2025. The texts define the legal position of a representative assessee in respect of income "in respect of which he is a representative assessee." Definitions or explanatory notes for "representative assessee," "trust," "beneficiary," or other key terms are not stated in the document. Statutory Provision Mode Text & Scope The provision applies "as regards the income in respect of which he is a representative assessee." Key elements: * Sub-section (1): The r....

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....ntent to (a) treat a representative assessee as if the income were his for duties and liabilities; (b) enable assessment and recovery against the representative in his own name; and (c) preserve the revenue's ability to reach the underlying person for assessment or recovery. The inclusion of an exclusive assessment rule (sub-section (2)) signals an intent to avoid multiplicity of assessments for the same income. The formula in sub-section (4) reflects a pro rata allocation approach where only part of trust income is chargeable. Exceptions/Provisos No express provisos or exceptions beyond those embedded in sub-sections (2) and (3) are provided. Thresholds, de minimis rules, or exemptions are not stated in the document. Illustrations ....

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....at "any such assessment shall be deemed to be made upon him in his representative capacity only"-omitting the phrase "and any other proceedings under this Act" and replacing "proceedings" with "assessment" in the deeming language. * Practical impact of omission: The Bill's broader phrase ("any other proceedings") expressly placed litigation and other procedural steps under the representative's name; the enacted text appears to narrow the express attribution to assessment proceedings specifically. Practically, this could be interpreted to limit the statutory statement of liability primarily to assessments, rather than to every procedural or adjudicatory step under the Act. That may affect procedural standing and the extent to which....

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....he representative and the beneficial owner, the quantum and partition of trust income and records substantiating the chargeable part of trust income (A), total income (B) and beneficiary receipts (C), since the statutory formula requires those figures. Evidence of control or management of property will be relevant where the revenue seeks remedies under sub-section (5). Key Takeaways * The provision treats representative assessees as if the income were beneficially theirs for duties, liabilities and assessment purposes. * The Bill's Old Version expressly referenced "any other proceedings under this Act" in sub-section (1)(a); the enacted Act language narrows the express wording to assessment-creating a potential interpretive differe....