Section 515 Appearance by authorised representative

Income-tax Act, 2025

At a Glance

Clause 515 (Old Version) of the Income Tax Bill, 2025 sets out who may appear as an authorised representative for an assessee before income-tax authorities and the Appellate Tribunal, lists categories of permissible representatives and exclusions, and prescribes disqualification grounds and appeal procedures. It matters because it governs representation rights in tax proceedings - affecting taxpayers, tax professionals, banks and institutions. Effective date or decision date: Not stated in the document.

Background & Scope

Statutory hooks: Clause 515 is part of the Income Tax Bill, 2025, captioned "Appearance by authorised representative." The clause governs attendance before "any income-tax authority or the Appellate Tribunal for any proceeding under this Bill." The provision defines "authorised representative" and "accountant" for the section, specifies persons excluded from representing an assessee, prescribes consequences for certain misconduct or convictions, and provides procedural safeguards for orders of disqualification. Definitions: the text supplies an exhaustive (enumerated) list of persons who may be authorised representatives, sets out exclusions to the definition of "accountant," and defines "relative" for the purpose of the section. Any other contextual background (policy rationale, legislative history) is Not stated in the document.

Statutory Provision Mode

Text & Scope

Coverage: Clause 515 permits an assessee "entitled or required to attend" before tax authorities or the Appellate Tribunal to attend through an authorised representative. Attendance in person remains mandatory where required for oath/affirmation u/s 246. Ingredients/elements: (1) entitlement/requirement to attend; (2) written authorisation by the assessee to the representative; (3) representative falling within enumerated categories; and (4) absence of disqualification under the listed grounds. The section extends to proceedings under the Bill before income-tax authorities and the Appellate Tribunal.

Interpretation

Legislative intent and interpretive principles indicated by the text: the clause prescribes a controlled, enumerated list of permissible representatives, suggesting an intent to balance access to representation with safeguards against conflicts of interest and misconduct. The use of express exclusions (e.g., relatives, officers, persons with certain financial interests) indicates a policy aim to preserve impartiality. The provision anticipates delegated rulemaking by referencing "as prescribed" for educational qualifications and for persons who may have business relationships of a prescribed nature. No explicit legislative purpose statement or explanatory notes are included. Not stated in the document: legislative history, purpose beyond textual indications, or debates.

Exceptions/Provisos

Carve-outs: subsection (2) carves out cases where personal attendance is required for examination on oath or affirmation u/s 246. The definition of "accountant" contains multiple exceptions (who the accountant does not include for representation), including company-specific auditor-eligibility constraints and exclusions where the person is the assessee himself or related persons, officers/employees, partners, persons having securities/indebtedness/guarantees below specified monetary thresholds (one lakh rupees), persons with prescribed business relationships, and persons convicted of fraud within ten years. Disqualification grounds in sub-section (4) include dismissal from Government service, conviction or imposition of specified penalties, insolvency, and conviction for fraud - with temporal limits specified for some categories.

Illustrations

• Example 1: A taxpayer may authorise a chartered accountant with a valid certificate of practice to appear before an income-tax authority, provided the chartered accountant is not the assessee, not an officer or employee of the assessee, not a relative, and not otherwise disqualified under subsection (4). (This example is a direct application of the text.)
• Example 2: An officer of a scheduled bank that maintains the assessee's current account may, if authorised in writing by the assessee, appear as authorised representative under clause 515(3)(a)(ii), unless disqualified under sub-section (4). (Drawn directly from the enumerated categories.)
• Example 3: A person who holds a security in the assessee but whose relative's holding does not exceed one lakh rupees may still fall within permissible representation unless otherwise excluded by other sub-clauses. (Example reflects the monetary threshold in sub-clause (G)(I).)

Interplay

Interaction with other provisions: clause 515 refers to section 246 (examination on oath/affirmation) to exclude personal attendance cases. It cross-references provisions in the Chartered Accountants Act, 1949 for the definition of "accountant" and to the Companies Act, 2013 for auditor eligibility. It also cites historical statutes (Indian Income-tax Act, 1922 and Income-tax Act, 1961) for transitional categories. The clause contemplates appeals to "the Board" against disqualification orders and refers to section numbers in other Acts/sections for specified exceptions. No mention is made of rules, forms, or procedural modalities beyond the ability to appeal within one month; detail on the mechanism of written authorisation is Not stated in the document.

Differences between Document 1 Section 515 of the Income-tax Act, 2025 and Document 2 Clause 515 of the Income Tax Bill, 2025 - (Old Version) and Practical Impact

• Structure and wording of definitions: The enacted Section 515 (Doc 1) uses the phrase "For the purposes of this section,--" introducing sub-section (3) with enumerated definitions including (a) "authorised representative" and (b) "accountant"; the Bill version (Doc 2) uses "In this section,--" with largely similar enumerated items.
  • Practical impact: largely stylistic; no material difference unless specific wording differs (noted below).
• Clause (3)(a)(viii)/(viii) - transitional/legacy category: Doc 1 sub-clause (viii) refers to "any other person who was an authorised representative in accordance with the provisions of section 288(2)(vii) of the Income-tax Act, 1961 (43 of 1961);" Doc 2 sub-clause (viii) refers to "any other person who, immediately before the coming into force of the said Act, was an income-tax practitioner as per section 61(2)(iv) of the Indian Income-tax Act, 1922 (11 of 1922), and was actually practising as such;".
  • Practical impact: Doc 1 ties the legacy category to the previous Income-tax Act, 1961, via a specific section; Doc 2 ties it to the 1922 Act's income-tax practitioner definition and an additional "actually practising" requirement. This change may broaden or shift the universe of legacy practitioners recognised; precise practical effect depends on which historical practitioners meet the cited prior-section criteria. The difference affects transitional eligibility of persons who represented taxpayers before earlier regimes.
• Prescriptive language for educational qualification sub-clause: Doc 1 sub-clause (vi) states "any person, who has acquired such educational qualifications, as may be prescribed;" (words identical to Doc 2 which has "as prescribed" - Doc 2: "as prescribed;" Doc 1: "as may be prescribed;").
  • Practical impact: Doc 1's "may be prescribed" arguably emphasises delegated-rulemaking; Doc 2's shorter "as prescribed" is substantively the same in practice. No material operational difference apparent.
• Definition of "accountant" exceptions - organisational terminology: Doc 1 in sub-clause (b)(ii)(B) uses "for an assessee, being a registered non-profit organisation, any person referred to in section 355(h)(i) or (ii) or (iii) or (iv);" whereas Doc 2 uses "for an assessee, being a trust or institution, any person referred to in section 355(h)(i) or (ii) or (iii) or (iv);". Practical impact: Doc 1 replaces "trust or institution" with "registered non-profit organisation". This narrows or clarifies the class by requiring registration as a non-profit organisation - effect is to limit who is excluded from being an accountant for representation in respect of such assessees.
  • Practical effect: companies or entities that are trusts/institutions but not registered non-profit organisations may be treated differently under the enacted text.
• Cross-references to penalties/sections in disqualification (sub-section (4)(b)): Doc 1 excludes persons on whom a penalty has been imposed under this Act, except penalties u/s 271(1)(ii) or 272A(1)(d) of the Income-tax Act, 1961 or section 465(1)(d) of this Act. Doc 2 instead excepts a penalty imposed u/s 275(1)(ii) of the Income-tax Act, 1961 or section 465(1)(d).
  • Practical impact: the enacted provision substitutes different cross-references to prior Act penalty sections (271/272A referencing 1961 Act) compared to the Bill's 275 reference. This changes which historical penalty types are carved out from disqualification-affecting whether prior penal sanctions continue to block representation. Practically, the change alters eligibility where the prior penalty falls under different section numbers.
• Sub-section (5)(b) phrasing on non-legal/accountant misconduct: Doc 1: sub-section (5)(b) states that a non-legal practitioner or non-accountant "who is found guilty of misconduct in any income-tax proceedings by the prescribed income-tax authority, he may be directed by such authority that he shall henceforth be disqualified..." Doc 2: similar but omits "prescribed" before "income-tax authority" and uses slightly different punctuation.
  • Practical impact: Doc 1's insertion of "prescribed" suggests a specified authority will be designated by rules; this could narrow or clarify which authority may issue such disqualification directions.
• Definition of "relative": Doc 1 articulates the phrase "any lineal ascendant (maternal or paternal) or descendant" in (d) and (e); Doc 2 uses "any lineal ascendant or descendant" without parenthetical clarification.
  • Practical impact: Doc 1 clarifies maternal/paternal; substantive application unchanged but explicitness increased.

Practical impact summary

• Transitional categories and legacy practitioners: changes to the historic cross-references (1922 Act vs 1961 Act sections) alter precisely which pre-existing practitioners retain authorised-representative status; this can affect availability of representation for certain categories of taxpayers immediately after enactment.
• Scope of excluded "accountant" relationships: replacing "trust or institution" with "registered non-profit organisation" narrows an exception and may restrict or clarify who cannot represent certain non-profit assessees.
• Prescribed authority and rulemaking signals: insertion of "may be prescribed" and "prescribed income-tax authority" suggests delegated instruments will play a role in operationalising eligibility and disqualification, increasing the importance of subordinate legislation.
• Cross-reference shifts to penalty sections change which historical sanctions impact representation rights; practitioners affected by prior penalties should check the specific cited sections to determine continuing eligibility.

Practical Implications

• Compliance and risk areas: authorised representatives must ensure they are not within the exclusion categories (relatives, officers/employees, persons with disqualifying financial interests or convictions). Taxpayers must provide written authorisation. Persons with prior convictions, insolvency, or dismissal from government service should verify whether the temporal disqualification applies.
• Record-keeping/evidence points: the text requires written authorisation by the assessee; parties should retain copies of written authorisations and any documentary evidence of eligibility (e.g., certificate of practice for chartered accountants). Where appeals to the Board are available against disqualification orders, parties should retain notice and order documents to meet the one-month appeal window.

Key Takeaways

• Clause 515 permits representation by an explicitly enumerated set of persons for proceedings before income-tax authorities and the Appellate Tribunal, subject to specified exclusions and disqualification grounds.
• Personal attendance remains mandatory where examination on oath/affirmation is required u/s 246.
• The definition of "accountant" ties representation rights to chartered accountants holding valid certificates of practice, with multiple exclusions to prevent conflicts of interest.
• Disqualifications include dismissal from Government service, certain convictions or penalties, insolvency, and fraud convictions with specified temporal consequences; procedural safeguards include opportunity to be heard and a one-month appeal to the Board.
• Several aspects are to be prescribed, signalling a role for subordinate rules (e.g., educational qualifications, prescribed income-tax authority for disqualification of non-professionals).
• Transitional references to prior statutes create categories for legacy practitioners; exact scope depends on interpretation of the cited prior provisions.
• Specific operational details (effective date, form of written authorisation, particulars of prescriptions) are Not stated in the document.

Full Text:

Section 515 Appearance by authorised representative