at 4:46 PM

Assessment of HUF after partition as per Section 171

HUF will be assessed as HUF till partition is admitted by ITO
  • When at assessment, it is said by any member that HUF has been partitioned wholly or partially; Assessing Officer may inquire by giving notice to all members
  • On completion of inquiry by assessing officer, AO shall record the findings as to whether there has been whole or partial partition and if there has been such partition; the date on which it has taken place
  • Where a partial partition has taken place after 31st December, 1978, no claim that such partial partition has taken shall be inquired into and no findings shall be recorded. Such family shall continue to be liable to be assessed as if no such partition has taken place. It shall be assessed as HUF
  • Where a finding of total/partial partition has been recorded by the AO and partition took place during the previous year, the total income of the family in respect of the period upto the date of such partition shall be assessed as if no partition has taken place. Each member of such family and the family shall be jointly and severally liable for payment of any tax
  • The income earned after partition shall not be deemed to be the income of the family but it will be deemed to be the personal income of the members and each coparcener shall have to pay tax on his share of income at the time of assessment. If after partition, several small HUFs have come into existence, each shall have to pay tax on their own income separately 

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