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

Which of the following is regarded as a 'partition' of a HUF under the Income-tax Act, 2025 for the purposes of the assessment-after-partition provisions?

Where property can be physically divided, partition means an actual physical division of that property. Dividing only the income without dividing the income-producing property is not partition, and a mere severance of status for indivisible property is also not partition.

  1. AA physical division of divisible property among membersCorrect
  2. BA physical division of the income without dividing the property producing it
  3. CA mere severance of status of the members where the property is indivisible
  4. DAn oral declaration by members that they are now separate

Explanation

Under section 315(10)(a), where property admits of physical division, partition means a physical division of the property. A division of income alone is not partition, and for indivisible property a mere severance of status is also not partition. An oral declaration without division does not qualify.

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