Hindu Undivided Family: Why you should go for a full partition of your HUF?

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HUF then continues with my 4 family members. Post the partial partition my brother and his family will have no claim in the HUF. Later at any given time, I can fully partition the HUF amongst my family after taking the ITO assessing officer’s concurrence.

I am given to understand that in case of full partition, I have to go through the court of law only. Answer: Under Hindu Law, there are no restrictions as to the partial partition of the HUF. However, the income tax laws do not recognise the partial partition.

So, in case of partial partition, the income arising from the assets distributed to the members shall continue to be taxed in the hands of the HUF even if the HUF does not actually receive the income which will not serve any purpose. There is no rule that under a partition the assets need to be distributed amongst the members equally. The assets can be given to a few members to the exclusion of others as long as all the members agree to it.

So I would suggest you go for full partition of the HUF assets under which the cash can be distributed equally between both the brothers and then the same can be distributed equally between member of their family. The residential house can be given to members of your family without allotting any share to the branch of your brother’s family. His share in the house can be gifted by you/your family members to your brother and his family members separately under a gift.