What is Representative Assessee?

The meaning of representative assessee is that it is a person or an entity who is responsible for the tax filings on behalf of any other taxpayer under the provisions of the Income Tax Act. Generally, this applies when the taxpayers are not able to fulfill their tax duties because of economic, criminal, or other reasons. 

A representative assessee is chargeable for the assets, earnings, or tax-related topics of another entity or individuals. They can be a man, a woman, a non-resident, a minor, a mentally incapable individual, or a deceased’s estate. The Income Tax Act of 1961 outlines the exact situation where a person is eligible to act as a consultant assessee by making sure to follow the tax regulations.

What are the Eligibility Criteria for Appointing a Representative Assessee?

Here are the eligibility criteria for appointing the representative assessee: 

1. Trustee or Manager: It includes handling of the tax duties of an accept as affiliation of folks with accuracy.
2. Guardian or Parent: It includes filing the taxes on behalf of a minor or a character who is mentally incapable. 
3. Legal Heir or Executor: It includes managing the taxes for the property of the deceased.
4. Business Representative: It is a character who manages the tax obligations for a business because the honest taxpayer is unavailable. 
5. Agent of a Non-Resident: It includes the filing of the taxes on behalf of a non-resident man, woman, or foreign employer who has earned the profits in India. 

Steps for Filing Taxes as a Representative Assessee

The steps for filing the taxes as a representative assessee are given below:

Step 1: Determine the eligibility for the assessee

First, you need to verify whether you qualify as a representative assessee or not under the Income Tax Act. You also need all the applicable documents, including a felony inheritor’s certificate, a lawyer’s affidavit, or proof of the guardianship. 

Step 2: Register as a Representative Assessee

Log in to the Incoem tax e-filing portal. Then, navigate to the ‘My Account’ tab and select the option saying ‘Register as Representative’. You need to provide all the necessary details along with the PAN card of both the assessee and the consultant. Submit all the help files for verification. 

Step 3: Get the approval from the Tax Authorities

After you have submitted the request, the income tax department will evaluate your application and verify the information you have provided. Once it is approved by them, the representative assessee is authorised formally and legally to handle the tax obligations on behalf of the taxpayer.

Step 4: File the Income Tax Return (ITR)

You need to use of relevant form to file your ITR, usually based on the nature of the profits. According to the legal tax guidelines, you need to report all the taxable earnings, exemptions, and deductions. You have to ensure tax compliance and follow all the tax deadlines to avoid possible penalties. 

Step 5: Pay the required Taxes and submit the Return

You need to calculate the outstanding tax liabilities and pay them by using the online banking or authorised tax payment channels. Now, you can submit your ITR electronically on the website and verify it by using the Aadhaar card OTP, Electronic Verification Code, or Digital Signature Certificate. 

Step 6: Retain Documents for Future Reference

Keep the copies of all your tax filings, helping documents, and acknowledgements for audit purposes and verification functions.