A nominee is defined as which of the following?

A nominee refers to a person who receives income on behalf of another individual, making them responsible for managing that income, often for the benefit of the original owner. In the context of taxation, a nominee typically does not have an ownership interest in the assets or income they are handling. Instead, they act as a conduit, reflecting the interest of the actual owner. This means that any income received by the nominee ultimately belongs to the actual owner, who is legally entitled to it.

For instance, if an investor places funds in a trust or a joint account, the nominee is the individual listed as the account holder but does not have the right to the funds apart from their duty to manage them for the real owner. Thus, defining a nominee as someone who receives income belonging to another captures the essence of their role and responsibilities accurately.