Partition of Hindu Undivided Family (HUF)

Definition: Partition signifies the division of property within a Hindu Undivided Family (HUF), terminating its joint family status. It involves physical separation of assets among members, determining individual shares. Types of Partition: Total Partition: All HUF assets are divided, ending joint status. Partial Partition: Only specific assets are divided, while others remain undivided HUF property.

Right to Claim Partition: Coparceners, including male descendants up to four generations. Unborn sons are entitled to a share equal to born sons. Female family members, daughters, and wives have partition rights.

Procedure and Tax Assessment: Partition recognized under Section 171 of the Income Tax Act. AO conducts an inquiry if partition is claimed during assessment. Tax liability determined based on partition date and member shares.

Partition of HUF Assets: Tax law recognizes only total partition; partial partition doesn't affect tax liabilities. Joint family property retains its status even after partition until certain conditions are met. Nature of Property Received: Upon partition, joint family property maintains its status until certain events occur. Individual property retains its character upon inheritance.