Direct and Indirect Taxation · Residential Status and Scope of Total Income

Income of Representative Assessees and Executor under Income-tax Act 2025

Updated 10 October 2026 · Fact-checked

A representative assessee is a person who is taxed on income that belongs to someone else, such as a guardian, agent, trustee or receiver. An executor is taxed on the estate of a deceased person under section 312, as an individual if there is one executor or as an AOP if there are more. Residential status follows the deceased.

Understand Income of Representative Assessees and Executor

Some people cannot pay tax on their own income. A minor, a non-resident abroad, or a person of unsound mind cannot manage affairs. Someone else receives the income for them. The Act lets the tax department deal with that someone. This person is the representative assessee.

Section 303 lists who is a representative assessee. These are: the agent of a non-resident; the guardian or manager of a minor or a person who is mentally ill or of unsound mind; the Court of Wards, Administrator-General, Official Trustee, or a receiver or manager appointed by a court; a trustee under a written trust (including a valid wakf deed); and a trustee under an oral trust. Each is a representative only for the income he receives or is entitled to receive on behalf of another. A representative assessee is deemed to be an assessee under the Act.

Section 304 sets the liability. The representative is assessed in his own name, but only in his representative capacity, for that income. He has the same duties and liabilities as if the income were his own. Tax is recovered from him as it would be from the person represented. Once assessable as a representative for that income, he cannot be assessed on it under other provisions. The Assessing Officer may still assess the beneficiary directly, or recover tax from the beneficiary. The officer can proceed against all property under the representative's control or management. Section 305 gives the representative a right to recover tax paid from the person represented, or to retain it from money in his hands. He may also retain his estimated liability from money payable to the principal. If they disagree on the amount, he can get a certificate from the Assessing Officer, which is his warrant for retaining that amount.

An executor is a special case under section 312. The income of the estate of a deceased person is taxed in the executor's hands. The word executor includes an administrator or any person administering the estate. If there is one executor, the estate is taxed as an individual. If there are more executors, it is taxed as an association of persons (AOP). The executor takes the residential status of the deceased for the tax year of death. The executor's estate assessment is separate from his own personal assessment.

Section 312 also fixes the period. Separate assessments are made for each completed tax year or part of it, from the date of death to the date of complete distribution to the beneficiaries. Income of the estate that is distributed to, or applied for the benefit of, a specific legatee in that year is excluded from the estate's income. It is included in the legatee's total income for that tax year. Do not confuse this with the legal representative under section 302, who is liable for the deceased's own tax dues, limited to the estate.

Key rules to remember

Executor: who is taxed (s. 312(1)): One executor → taxed as an individual; more than one executor → taxed as an AOP; Executor includes an administrator or any person administering the estate (s. 312(3)).
Residential status of executor (s. 312(2)): Executor's status for the estate = status of the deceased for the tax year of death; Executor's own residential status is not used for the estate income.
Separate assessment (s. 312(4) and (5)): Estate assessed separately from executor's own income; one assessment per completed tax year or part, from date of death to complete distribution; Always show the estate computation separately from the executor's personal computation.
Specific legatee (s. 312(6)): Estate income = Income of the estate − income distributed to or applied for a specific legatee in that year; The excluded income is taxed in the legatee's total income for that tax year.
Representative assessee list (s. 303(1)): Agent of non-resident | Guardian or manager of minor, mentally ill or unsound mind person | Court of Wards, Administrator-General, Official Trustee, receiver or manager | Trustee under written trust | Trustee under oral trust; Each is a representative only for the income received or receivable for another.
Limit on legal representative (s. 302(4)): Liability of legal representative ≤ extent to which the estate can meet the liability; Under s. 302(5) and (6), if he creates a charge on, disposes of or parts with estate assets while tax is unpaid, he is personally liable up to the value of those assets.
Retention of tax (s. 305): Representative may recover tax paid from the principal, or retain it from money in his hands; If there is disagreement on the estimate, he gets a certificate from the Assessing Officer; the final amount recoverable from him cannot exceed the certificate, except to the extent of additional assets of the principal in his hands.

How to solve Income of Representative Assessees and Executor questions

Use this method for any question on representative assessees or an executor. It keeps your answer in the order examiners mark.

1Identify the capacity in which the person acts: agent, guardian, trustee, receiver, executor or legal representative. Quote section 303 or 312 or 302.
2Identify whose income it is: the minor, the non-resident, the beneficiary or the estate of the deceased.
3Decide the status in which tax is charged. For an executor, one executor means individual and several mean AOP.
4Fix the residential status. For an executor, use the deceased's status for the tax year of death.
5Compute the estate income for each tax year or part from the date of death to complete distribution, separately for each year.
6Exclude income distributed to or applied for a specific legatee in that year, and show it as taxable in the legatee's hands.
7Keep the executor's own income out of the estate computation. State that assessments are separate.
8State the consequence: liability limited to the estate (legal representative), the right to recover or retain tax under section 305, and the Assessing Officer's power to assess the beneficiary directly.

Quickest way: Capacity, status, residence, exclusion

When to use it: Use for short written answers and MCQs where you must name the correct taxable person or status quickly.

Name the capacity and the section (303, 312 or 302).
Count the executors: one is an individual, more than one is an AOP.
Take residential status from the deceased for the year of death.
Subtract income given to a specific legatee and tax it with the legatee.
Never mix the executor's own income with the estate's income.

Common mistakes in Income of Representative Assessees and Executor

Treating several executors as an individual.
Students remember only the single-executor rule.
Fix: Section 312(1): one executor is taxed as an individual, more than one as an AOP. Count the executors first.
Using the executor's own residential status for the estate income.
The executor is the one filing, so it feels natural to use his status.
Fix: Section 312(2) uses the residential status of the deceased for the tax year in which death took place.
Adding the executor's personal income to the estate income.
Both are in the same person's name.
Fix: Section 312(4) requires separate assessment. Prepare two computations.
Taxing legatee-distributed income in the estate.
Students forget the exclusion in section 312(6).
Fix: Deduct income distributed to or applied for a specific legatee in that tax year from the estate and include it in that legatee's total income.
Saying a legal representative's liability is unlimited.
Confusion between sections 302(1) and 302(4).
Fix: Liability is limited to what the estate can meet. It becomes personal, up to the value of assets, only if he creates a charge on, disposes of or parts with estate assets while the tax is unpaid.
Thinking the representative can never be bypassed.
Students overlook section 304(3).
Fix: The Assessing Officer may directly assess the beneficiary or recover the tax from that person, whichever the officer chooses.

Worked examples

Example 1

Mr. Raghav Iyer, a resident individual, died on 10 August 2026. His will names his sons Arjun and Vikram as executors. The estate earns rent of ₹3,00,000 in tax year 2026-27 after the date of death. In what capacity will the estate income be taxed, and what is the residential status for tax year 2026-27?

Show the solution

Capacity: Arjun and Vikram administer the estate, so they are executors under section 312(3).
Number of executors: there are two, which is more than one.
Under section 312(1), income of the estate is chargeable in the hands of the executors as an association of persons.
Residential status: under section 312(2), the executors are treated as resident or non-resident according to Mr. Iyer's status for tax year 2026-27, the year of death. He was resident, so the AOP is resident.
Separate assessment: the executors' own incomes are assessed separately under section 312(4).

Answer: The estate income of ₹3,00,000 is taxed in the hands of Arjun and Vikram as an AOP. The status is resident, because it follows the deceased for the year of death. Their personal income is assessed separately.

Example 2

Smt. Meera Nair died on 1 July 2026. Her sole executor, Mr. Gopal, received income of ₹5,00,000 from the estate in tax year 2026-27. Of this, ₹2,00,000 was distributed during the same year to Ms. Divya, a specific legatee. Compute the estate income taxable in the executor's hands and state where the ₹2,00,000 is taxed.

Show the solution

Capacity: one executor, so the estate is taxed as an individual under section 312(1).
Income of the estate for the year: ₹5,00,000.
Under section 312(6), income distributed to a specific legatee in that year is excluded.
Income taxable in the executor's hands = ₹5,00,000 − ₹2,00,000 = ₹3,00,000.
The excluded ₹2,00,000 is included in the total income of Ms. Divya for tax year 2026-27, the year of distribution.
The assessment is separate from Mr. Gopal's own income under section 312(4).

Answer: ₹3,00,000 is taxable in Mr. Gopal's hands as executor, taxed as an individual. The ₹2,00,000 is taxable in the hands of Ms. Divya for tax year 2026-27.

Exam tips

Write the section number with the rule, for example section 312(1) for the executor, to earn step marks.
In MCQs, check the number of executors first. One means individual, more than one means AOP.
For a computation question, show the estate computation and the executor's own computation as two separate statements.
In theory answers, list all five categories of representative assessee under section 303(1) and name who represents each.
If distribution to a legatee is mentioned, always exclude it from the estate and say it is taxed with the legatee.

Practice questions from Residential Status and Scope of Total Income

Income of Representative Assessees and Executor: frequently asked questions

Who is a representative assessee under the Income-tax Act, 2025?

Section 303 covers the agent of a non-resident, the guardian or manager of a minor or a person of unsound mind, court-appointed receivers and similar officers, and trustees under written or oral trusts. Each is taxed for the income he receives on behalf of another. He is deemed to be an assessee.

How is the income of a deceased person's estate taxed?

Under section 312, it is taxed in the hands of the executor, as an individual if there is one executor and as an AOP if there are more. The residential status is that of the deceased for the tax year of death. Assessments are made separately for each tax year or part until complete distribution.

Is the executor personally liable for the deceased's tax?

Under section 302, the legal representative is liable for the sum the deceased would have been liable to pay, but only to the extent the estate can meet it. If he creates a charge on, disposes of or parts with estate assets while the tax is unpaid, he becomes personally liable up to the value of those assets.

Can a representative assessee recover the tax he pays?

Yes. Under section 305 he can recover what he paid from the person on whose behalf he paid, or retain it from money in his hands. He can also retain his estimated liability. If there is a dispute, he gets a certificate from the Assessing Officer fixing the amount to retain.