Chapter XXIII - Miscellaneous
Section 503
Section 503: service of notice when a family is disrupted or a firm etc. is dissolved
Section 503 fills a practical gap: once a Hindu undivided family has been through total partition, or a firm or association of persons has dissolved, there is no longer a single entity to serve a tax notice on. This section says who the tax department can validly serve notices on instead.
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Need advice on Section 503?
This article is for general information. Refer to the Income-tax Act, 2025 as amended by the Finance Act, 2026 and the Taxation and Other Laws (Amendment) Act, 2026 for the official provisions. If you need professional advice for your situation, contact Bizeneed.
Statutory text
Bare law
(1) After a finding of total partition has been recorded by the Assessing Officer under section 315 for any Hindu family, notices under this Act in respect of the income of the Hindu family shall be served on the person, who was its last manager, or, if such person is dead, then on all adults who were members of the Hindu family immediately before the partition.
(2) Where a firm or other association of persons is dissolved, notices under this Act for the income of such firm or association may be served on any person, who was a partner (not being a minor) or member of the association, immediately before its dissolution.
Introduction
The rules for service of income-tax notices continue after a recorded total partition of a Hindu family or dissolution of a firm or association of persons.
Section 503 identifies a prior manager, adult former members, partner or member who may receive the notice, depending on the event and whether the previous manager is alive.
Key takeaways
Recorded HUF partition
After a finding of total partition under section 315, the former last manager receives notice; if deceased, all adults who were members immediately before partition do.
Dissolved firm or association
Notice may be served on a former non-minor partner or member immediately before dissolution.
Income remains the subject
The rule applies to notices about income of the former family, firm or association.
After a total partition of a Hindu family
After a finding of total partition has been recorded by the Assessing Officer under section 315 for a Hindu family, notices under the Act relating to the income of that Hindu family are to be served on the person who was its last manager, or, if that person is dead, on all adults who were members of the Hindu family immediately before the partition.
After dissolution of a firm or association of persons
Where a firm or other association of persons is dissolved, notices under the Act relating to the income of that firm or association may be served on any person who was a partner (not being a minor) or member of the association immediately before its dissolution.
Applying Section 503 in practice
Two routes. After the Assessing Officer records a finding of total partition under section 315, notices about the Hindu family's income go to its last manager, or, if that person has died, to all adults who were family members immediately before partition. For a dissolved firm or association of persons, notice may go to a person who was a non-minor partner or member immediately before dissolution.
Step-by-step flow for applying Section 503
- 1
What kind of assessee is the notice about?
- A Hindu family: Go to the next step.
- A firm or other association of persons that has been dissolved: Go to step 4.
- 2
Has the Assessing Officer recorded a finding of total partition under Section 315?
- No: Section 503(1) does not apply.
- Yes: Go to the next step.
- 3
Is the last manager of the Hindu family alive?
Section 503(1) covers notices in respect of the income of the Hindu family.
- Yes: Serve the notice on the person who was its last manager.
- No: Serve the notice on all adults who were members of the Hindu family immediately before the partition.
- 4
Who can be served for a dissolved firm or association of persons?
Under Section 503(2), notices for the income of the firm or association may be served on any person who was a partner (not being a minor) or a member of the association immediately before its dissolution.
Practical checklist
Do
- find the partition finding or dissolution date, historical membership, ages and service proof.
Illustrative example
Worked example: a notice after total partition when the manager has died
Hypothetical facts (illustration only, not a real taxpayer): The Assessing Officer has recorded a finding of total partition under Section 315 for a Hindu family. Its last manager has since died. Immediately before the partition the family had four members: three adults and one minor. A notice about the family's income is to be served.
Finding recorded
A total-partition finding under Section 315 has been recorded, so Section 503(1) applies.
Manager dead
Because the last manager is dead, the notice cannot be served on him.
Who is served
The notice is served on all adults who were members immediately before the partition: 4 members − 1 minor = 3 adults.
Outcome
- The notice must be served on each of the three adult members.
- The minor member is not among those to be served under Section 503(1).
Frequently asked questions
Who is served a tax notice after a Hindu undivided family's total partition?
The person who was the family's last manager - or, if that person has died, all adults who were members of the Hindu family immediately before the partition.
Who can be served a notice after a firm is dissolved?
Any person who was a partner (other than a minor) or a member of the association immediately before its dissolution.
Does dissolution by itself erase prior-income proceedings?
Section 503 supplies a service route for them.
Need help applying this provision to your situation?
Talk to our tax team about a notice you receivedLast updated 10 October 2026