Home / Income-tax Act / Section 171
Indian Income Tax Law | Updated October 2026

Section 171: Assessment After Partition of a Hindu Undivided Family

Section 171 of the Income-tax Act, 1961 governs assessment of a Hindu undivided family (HUF) after partition. It determines when a partition is recognised for income-tax purposes, how income up to the partition date is assessed, and who must pay outstanding tax. The corresponding provision under the Income-tax Act, 2025 is Section 315.

Applicable legislation: The Income-tax Act, 2025 applies from 1 April 2026, while the Income-tax Act, 1961 continues to matter for earlier assessment years and saved proceedings. Section 171 and Section 315 should be read with the law applicable to the period and proceeding concerned.

Meaning of HUF partition for income-tax purposes

A Hindu undivided family is a taxable unit distinct from its members. A partition under Section 171 requires physical division of property where such division is possible. Merely dividing the income arising from property, without dividing the property itself, is not sufficient. If the property cannot be physically divided, the division must be made in the manner the property admits; a mere severance of joint-family status is not enough.

A partial partition is one that is partial as to the family members, the HUF properties, or both. The tax treatment of partial partitions is particularly restrictive: a partial partition after 31 December 1978 of an HUF previously assessed as undivided is not recognised for income-tax assessment under Section 171(9).

Section 171(1): Presumption of continued HUF status

An HUF previously assessed as undivided is deemed to continue as an HUF for income-tax purposes unless, and to the extent that, the Assessing Officer records a finding of partition under Section 171. A family-law partition and its recognition for income-tax assessment are therefore separate questions.

Sections 171(2) and 171(3): Inquiry and finding

  1. During an assessment under Section 143 or 144, a member or representative claims that a total or partial partition occurred.
  2. The Assessing Officer must inquire into the claim and give notice of the inquiry to all family members.
  3. After inquiry, the officer records whether a partition took place and, if so, its date.
  4. The prohibition on recognition of post-1978 partial partitions overrides the general inquiry mechanism.

Useful supporting records may include the partition deed, ownership and mutation documents, asset allocation schedules, bank and accounting records, and evidence that divisible property was actually divided. The documents required depend on the facts.

Sections 171(4) and 171(5): Income before and after partition

If a recognised partition occurs during the previous year, the HUF's income up to the partition date is assessed as if no partition had taken place. Income attributable to members after a recognised total partition is ordinarily considered in their respective hands under the applicable provisions. If the partition takes place after the previous year ends, the HUF's income for that completed previous year is assessed as though there had been no partition.

Section 171(4)(b) makes each member or group of members jointly and severally liable for tax on the pre-partition HUF income, in addition to any separate liability. Section 171(7) measures the several liability by the portion of joint-family property allotted on partition.

Sections 171(6) to 171(8): Recovery and other dues

Where the Assessing Officer discovers after completing an HUF assessment that partition had already occurred, tax may be recovered from persons who were members before partition, subject to the statutory rules. The provisions also apply, so far as possible, to penalties, interest, fines and other sums relating to periods up to partition. Joint and several liability allows recovery in accordance with law; allocation of several liability is determined by property received.

Section 171(9): Partial partition after 31 December 1978

For an HUF previously assessed as undivided, a partial partition occurring after 31 December 1978 cannot be recognised for assessment under this provision. No inquiry or favourable finding can be made on that claim, and the HUF continues to be assessed as if the partial partition had not occurred. The HUF and relevant members or groups remain jointly and severally liable for tax and other specified dues, with individual shares of liability computed by the property allotted.

Important distinction: The restriction on partial partitions does not mean every genuine total partition is disregarded. A total partition may be recognised after the statutory inquiry and finding, where the legal requirements are met.

Illustration: Total partition during a tax period

Assume an HUF earns taxable income of Rs. 8,00,000 before a properly evidenced total partition on 30 September, and the Assessing Officer records the required finding. The pre-partition income is assessed in the HUF's hands. If the members subsequently earn income from the assets allotted to them, that later income is examined in their own hands under the applicable rules. This example does not calculate tax rates, which depend on the relevant year and the nature of the income.

Section 315 of the Income-tax Act, 2025

Section 315, titled Assessment after partition of Hindu undivided family, broadly carries forward the recognition, inquiry, assessment and recovery framework. The references to assessments under Sections 143 and 144 of the 1961 Act are updated to Sections 270 and 271 of the 2025 Act. Section 315(8) retains the prohibition on recognition of post-1978 partial partitions; Section 315(10) sets out the definitions of partition and partial partition. Subsection numbering differs between the two Acts, so cross-references should be checked against the relevant text.

Practical compliance checklist

  • Identify the applicable assessment year or tax year and the date of the proposed partition.
  • Determine whether the division is total or partial, including both members and properties.
  • Document actual division of divisible assets rather than merely dividing income.
  • Make the claim in the assessment proceedings and retain evidence for inquiry.
  • Identify HUF income before partition and the tax, interest and other outstanding liabilities.
  • Preserve records showing the assets allotted to each member or group.

Official legal sources

Frequently asked questions

Does a family partition automatically end HUF assessment?

No. An HUF previously assessed as undivided continues to be treated as such for tax purposes unless the Assessing Officer records the statutory finding of partition.

Is a partial HUF partition after 31 December 1978 recognised?

No. Section 171(9) prohibits recognition of such a partial partition for an HUF previously assessed as undivided.

Who pays the HUF's tax relating to the pre-partition period?

The HUF's pre-partition income is assessed under the statutory rules, and the members or groups may be jointly and severally liable. Their several liability is calculated by reference to property allotted.

What is the corresponding provision in the 2025 Act?

Section 315 of the Income-tax Act, 2025.