HUF Partition

HUF Partition – A Hindu Undivided Family (HUF) partition occurs when the joint family property and assets are divided among its members, resulting in separate shares for each coparcener. The partition can be voluntary or legal and affects the computation and assessment of income for tax purposes. The Assessment Year (AY) is the year in which income earned during the preceding Financial Year (FY) is evaluated and taxed. Income arising from the HUF or its assets up to the date of partition is assessed in the corresponding AY, while post-partition income is assessed individually for each member.

Example: If an HUF earns income during FY 2022–23 (1 April 2022 – 31 March 2023) and undergoes partition in the same period, the income up to the partition date is assessed in AY 2023–24