Section 167 of the Income-tax Act, 1961: Remedies Against Property of Representative Assessees
Section 167 gives the Assessing Officer remedies for recovering tax against property vested in, controlled by or managed by a representative assessee. The rule applies whether the tax demand is made against the representative assessee or directly against the beneficiary.
What does Section 167 provide?
Section 167, titled Remedies against property in cases of representative assessees, provides that the Assessing Officer has the same remedies against property of any kind vested in or under the control or management of a representative assessee as against the property of a person liable to pay tax. These remedies are available in the same full manner irrespective of whether the demand is raised against the representative assessee or directly against the beneficiary.
The provision concerns the means of recovering tax. It does not itself establish a new tax rate, create an independent charge on every asset, or dispense with otherwise applicable assessment and recovery requirements.
Who is a representative assessee and what property is covered?
Under Section 161, a representative assessee is generally liable in a representative capacity for income received for another person. The categories of representative assessees are specified in Section 160 and include, in appropriate cases, trustees, guardians, managers and agents of non-residents.
Section 167 refers broadly to property of any kind that is vested in the representative assessee or under that person's control or management. The relevant relationship to the property matters; merely having the title of trustee, manager or agent does not mean that all unrelated personal assets automatically become property held in a representative capacity.
- Vested property: property legally vested in the representative assessee, such as trust assets held by a trustee.
- Controlled property: property over which the representative assessee exercises relevant control on behalf of another person.
- Managed property: property managed in the representative capacity, including assets producing the income for which tax is due.
Illustration: Recovery from trust property
Suppose a trustee manages investments generating taxable income for a beneficiary. Tax is assessed on that income, but the amount remains unpaid. Where the statutory requirements are satisfied, the Assessing Officer may use the available tax-recovery remedies against property vested in or controlled by the trustee in that representative capacity. Section 167 permits such action even where the demand has been raised directly against the beneficiary.
This is an illustrative explanation. Actual recovery depends on the applicable assessment, demand, recovery procedure and facts concerning ownership or control of the property.
Section 304(5) of the Income-tax Act, 2025
The Income-tax Act, 2025 consolidates several rules governing representative assessees into Section 304. Sub-section (5) carries forward the substance of Section 167: the Assessing Officer has equivalent remedies against property vested in or under the control or management of a representative assessee, regardless of whether the demand is against that representative assessee or the beneficiary directly.
| Income-tax Act, 1961 | Income-tax Act, 2025 |
|---|---|
| Section 167 - Remedies against property | Section 304(5) - Recovery remedies concerning representative assessee property |
| Section 166 - Direct assessment or recovery not barred | Section 304(3) - Direct assessment or recovery |
| Section 161 - Liability of representative assessee | Section 304(1) and (2) - Representative assessee liability and assessment |
For tax years beginning on or after 1 April 2026, consult the 2025 Act. For prior tax years, the 1961 Act and the relevant savings provisions should be considered before determining the governing law.
Related income-tax provisions
- Section 161 - Liability of representative assessee: liability for income assessed in a representative capacity.
- Section 162 - Right to recover tax paid: recovery or retention of amounts paid by a representative assessee.
- Section 163 - Who may be regarded as an agent: agent status in relation to a non-resident.
- Section 166 - Direct assessment or recovery not barred: recovery directly from the person represented.
Official legislation and references
- Income Tax Department - Section 167 of the Income-tax Act, 1961
- Income Tax Department - Income-tax Act, 1961, amended by Finance Act, 2025 (PDF)
- Income Tax Department - Official section correspondence table (1961 to 2025)
- Income Tax Department - Legislative updates and official resources
Last reviewed: 27 October 2026. This article provides general legal information; applicable recovery procedures and transitional provisions should be checked for the relevant tax year.