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CS Professional · Goods and Services Tax (GST) and Corporate Tax Planning · Tax Planning and Business Restructuring

A Hindu undivided family business is succeeded to, and the joint family property is partitioned simultaneously with or after the succession. How is tax on the business income up to the date of succession assessed and recovered under the Income-tax Act, 2025?

Tax due on the HUF business income up to the date of succession is assessed and recovered in the manner provided in section 315, which deals with partition of the joint family. It is not simply charged on the successor or only the Karta.

  1. AIn the manner provided in section 315 for partition of the familyCorrect
  2. BEntirely from the successor, ignoring the partition
  3. COnly from the Karta, with no recovery from members
  4. DOnly after the partition is registered with the Registrar of Companies

Explanation

The Act says that for an HUF business succeeded to with partition, tax up to the date of succession is assessed and recovered as provided in section 315. Other options add rules the text does not contain.

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