My lecturer once informed me how is HUF property divided. In a Hindu Undivided Family (HUF), the joint family property is divided among the coparceners, or members of the family. This split may be total, dividing only a portion of the assets, or total, dividing all the assets. I have shared more details about it below.
How to Divide HUF Property?
The division of Hindu Undivided Family property or its partition is governed by Section 171 of the Income Tax Act, 1961, and must meet specific criteria to be recognized for tax purposes.
Unlike Hindu law, which allows a partition without physically dividing property, income-tax law mandates a physical division of assets “by metes and bounds” whenever feasible; mere severance of the family's status or distribution of income alone does not suffice.
Only a complete partition involving all members and HUF assets qualifies under the Act. Partial partitions, whether of certain persons or properties, executed after 31 December 1978, are not recognized for tax purposes.
The HUF continues to be assessed as a single entity, and its members remain jointly and severally liable for tax and related duties.
A valid partition may be effected via a partition deed or family settlement, though the former must be registered if immovable property is involved, while the latter may remain unregistered if no property is transferred.
Upon a complete partition, each coparcener, including daughters as coparceners and even a child in utero at the time of partition, receives their rightful share, as determined under the Hindu Succession Act.
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How is HUF Property Divided?
ravi
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4 months
2025-08-27T15:36:09+00:00 2025-08-27T15:36:11+00:00Comment
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