Representative Assessee, u/s 160(1) in respect of Non Resident is his / her agent or person who are treated as an agent U/s. 163 of the Income Tax Act.
Section 163 of the Income Tax Act states – agent in relation to non – resident (NR) is :
- One who is employed by NR.
- Having business connection with NR.
- From or through whom NR receives income directly or indirectly.
- Trustee of a NR.
A broker dealing with NR through NR broker is not an agent.
A Power of Attorney (POA) holder is an agent of a Non Resident u/s 163(1a) (since he is employed on behalf of Non-Resident), hence he is Representative Assessee of a Non Resident.
Every representative assessee shall be deemed to be an assessee for the purpose of the Income Tax.
Hence, a representative assessee’s liability, duties, responsibilities are at par with his own (u/s 161), as if it were his own assessment proceedings.
PAN Card & NRI
- Permanent Account Number (PAN) is a unique code allotted by Income Tax Department that acts as an identification for financial transactions of individuals.
- It is similar to Tax Identification Number (TIN) in foreign countries.
- The application for PAN can be made by non residents by filing Form No. 49AA.
- Online application for PAN card requires Aadhar card details. Hence, application can be made only in offline mode.
- Application requires either OCI card OR details of Passport + Foreign Bank account statement/Foreign utility bill/Foreign identity proof of the Non-resident applicant.
- PAN card application for delivery at a foreign address costs approx. Rs.1200 and delivery at any Indian address costs approx. Rs.100. Address proof in respect of the address of the applicant is mandatory for delivery in either case.
Requirements for obtaining PAN:
It is mandatory to quote PAN for below mentioned transactions :
- Several financial transactions in India.
- Opening of an account with a bank (can be opened by From no. 60), Demat Account for shares.
- Filing of Income Tax Return, if the income exceeds the minimum taxable amount. It is not compulsory to file a Return of income if you have a PAN.
- For Filing a Return of Income if Income is above taxable limits.
- For claiming of refund of TDS, if deducted.
- For carry forward of losses.
- All the dealings with Income Tax department, e.g. Form 15CA – 15CB.
