Section 315: assessment after partition of a Hindu undivided family

Deemed undivided until a formal finding of partition

A Hindu family hitherto assessed as undivided is deemed, for the Act's purposes, to continue as a Hindu undivided family, except where and to the extent a finding of partition has been recorded under this section.

The inquiry into partition

Where, at the time of making an assessment under section 270 or 271, a member of a Hindu family assessed as undivided claims that a total or partial partition has taken place, the Assessing Officer must inquire into it after giving notice of the inquiry to all family members.

On completing the inquiry, the Assessing Officer records a finding on whether there has been a total or partial partition and, if so, the date it took place.

Tax treatment where partition took place during the tax year

Where a finding of total or partial partition is recorded and the partition took place during the tax year: the joint family's total income up to the date of partition is assessed as if no partition had taken place; and each member or group of members is jointly and severally liable, in addition to any tax they are separately liable for, and irrespective of anything against Schedule III (Table, Sl. No. 1), for the tax on the income so assessed.

Tax treatment where partition took place after the tax year

Where a finding of total or partial partition is recorded and the partition took place after the tax year ended, the joint family's total income for that tax year is assessed as if no partition had taken place, and the joint-and-several-liability rule above applies in the same way.

Recovering tax after assessment, if partition is discovered later

If the Assessing Officer finds, after completing an HUF's assessment, that the family had already effected a total or partial partition, he proceeds to recover the tax from every person who was a family member before the partition - each such person is jointly and severally liable for the tax on the income so assessed.

This joint-and-several-liability regime also applies to the levy and collection of penalty, interest, fine or other sums relating to any period up to the date of the total or partial partition.

Partial partitions claimed after 31st December, 1978 are not recognised

Irrespective of anything else in this section, where a partial partition is claimed to have taken place after 31st December, 1978, among the members of a Hindu undivided family hitherto assessed as undivided: the claim will not be inquired into under Section 315(2), and no finding of such partial partition will be recorded under Section 315(3) - any finding purporting to record such a partial partition is null and void; the family continues to be liable to be assessed under the Act as if no such partial partition had taken place; and each member or group of members immediately before the partial partition, and the family itself, remain jointly and severally liable for any tax, penalty, interest, fine or other sum payable by the family for any period, whether before or after the partial partition.

Computing several liability, and key definitions

A member's or group's several liability under this section is computed according to the portion of the joint family property allotted to him or it at the partition, whether total or partial.

• "Partition" means, where the property admits of physical division, a physical division of the property (a physical division of income alone, without dividing the property producing it, is not a partition); or where the property does not admit of physical division, such division as it does admit of (a mere severance of status is not a partition).
• "Partial partition" means a partition that is partial as regards the persons constituting the HUF, or the properties belonging to the HUF, or both.

Frequently asked questions