Who can act as Authorized Representative (AR) under Income Tax Law?

As per Section 288(2) of Income Tax Act, 1961 there are Eight (8) Categories of Persons are Recognized to act as Authorized Representatives for & on behalf of the Income Tax Payers, as listed below:

1)   The Relative or Employee of the Assessee/Tax Payer [vide Clause (i) of Sub-section (2) of Section 288 of the Income Tax Act, 1961],

2)   The Officer of the Scheduled Bank in which the IT Assessee maintains a Current Account [vide Clause (ii) of Sub-section (2) of Section 288 of the Income Tax Act, 1961],

3)   The Legal Practitioner (i.e., Advocate/Lawyer) practicing in any Civil Court in India [vide

Clause (iii) of Sub-section (2) of Section 288 of the Income Tax Act, 1961],

4)   The Chartered Accountant or Auditor of Companies [vide Clause (iv) of Sub-section (2) of Section 288 of the Income Tax Act, 1961 read with suffixed “Explanation”],

5)   The Person who has passed any Accountancy Examination recognized by the Board [vide Clause (v) of Sub-section (2) of Section 288 of the Income Tax Act, 1961 read with Rule 50 of the Income Tax Rules, 1962],

6)   The Person who has acquired a Degree in Commerce or Law from Recognized Universities [vide Clause (vi) of Sub-section (2) of Section 288 of the Income Tax Act, 1961 read with Rule 51 of the Income Tax Rules, 1962],

7)   The Person who have attended before an Income Tax Authority on behalf of any assessee, before coming into force of this Act in certain Union Territories [vide Clause (via) of Sub-section (2) of Section 288 of the Income Tax Act, 1961], and

8)   The Person who, immediately before the commencement of this Act, was actually practicing as an Income Tax Practitioner under Indian Income Tax Act, 1922 [vide Clause (vii) of Sub-section (2) of Section 288 of the Income Tax Act, 1961].

Is there any requirement of being registered as AR?

Among the above Eight (8) Categories of ARs the (1) and (2) are casual, and thus there is no provision under the Income Tax Act for Registration of those Two Categories.   Among the next Two Categories of ARs, i.e., (3) and (4), as they derived their right to practice as Legal Practitioner or Accountant from the Bar Council or ICAI/ICSI & Companies Act respectively, there is no provision under the Income Tax Act for Registration of those Two Categories also.

The rest of the Four (4) Categories, i.e., from (5) to (8), to whom, there is provision under Income Tax Act for Registration as Income Tax Practitioner.

The Definition of the “Authorized Income Tax Practitioner”, as per Rule 49(a) of the Income Tax Rules, 1962, means any Authorized Representative as defined only in Clauses (v) or (vi) or (vii) of Sub-Section (2) of Section 288 of the Income Tax Act, 1961 only.   This Rule 49(a) confer the registration only for Three (3) Categories as Income Tax Practitioners.

However, it is to be noted that since the present Act is in Vogue for the last 53 years, retaining & continuing the last Two Categories, i.e., (7) and (8) still under the Act is vague, because probable aspirants of registration under these Two Categories might have attained the age of over 70 years.