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CS Executive · Tax Laws and Practice · Computation of Total Income and Tax Liability of various Entities

Under the Income-tax Act, 2025, a Hindu family that has so far been assessed as undivided is treated for the purposes of the Act in which way?

A Hindu family hitherto assessed as undivided is deemed to continue as a HUF for tax purposes, except where and to the extent that the Assessing Officer has recorded a finding of partition. A mere claim of partition by a member does not change its status.

  1. AIt is deemed to continue as a Hindu undivided family, unless a finding of partition has been given under the relevant sectionCorrect
  2. BIt ceases to be a Hindu undivided family once any member claims a partition
  3. CIt is treated as an association of persons from the date of any claim of partition
  4. DIt is treated as divided automatically after one tax year of assessment

Explanation

Section 315(1) provides that a family hitherto assessed as undivided continues to be treated as a HUF except where and to the extent that a finding of partition has been recorded. A mere claim by a member does not end its status, so the other options are wrong.

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