Section 315 explained: this guide covers what it means, who it applies to, the step-by-step process, documents required, fees, due dates and penalties in India — so you can stay compliant with confidence and avoid costly mistakes.
Section 315 deals with what happens for tax when a Hindu undivided family (HUF) divides its property. The family is presumed to continue as an HUF unless the Assessing Officer records a finding of partition after an inquiry. If a total partition is found, the income up to the date of partition is assessed as if there had been none, and every member is jointly and severally liable. A partial partition after a stated date is not recognised at all. This article reads the section as per the Income-tax Act, 2025 (30 of 2025) as amended by the Finance Act, 2026.
A Hindu family hitherto assessed as undivided is deemed to continue as an HUF unless a finding of partition is given under this section. When a partition (total or partial) is found, the income up to the date of partition is assessed as if no partition had taken place, and each member or group is jointly and severally liable for that tax. A partial partition after 31 December 1978 is not inquired into and the family continues to be assessed as undivided.
Sub-section (1): the presumption of continuity
A Hindu family hitherto assessed as undivided is deemed, for the purposes of the Act, to continue to be a Hindu undivided family, except where and in so far as a finding of partition has been given under section 315 in respect of that HUF.
Sub-sections (2) and (3): the inquiry and the finding
- (2) Where, at the time of making an assessment under section 270 or section 271, it is claimed by or on behalf of any member of a Hindu family assessed as undivided that a partition, total or partial, has taken place among the members, the Assessing Officer makes an inquiry after giving notice of the inquiry to all the members of the family. See our articles on section 270 for the assessment route.
- (3) On completing the inquiry, the Assessing Officer records a finding whether there has been a total or partial partition of the joint family property and, if so, the date on which it took place.
The claim is raised at the time of assessment; the inquiry is the Assessing Officer's, and every member must be notified.
Sub-sections (4) and (5): what follows a finding
| Sub-section | When the partition took place | Consequence |
|---|---|---|
| (4) | During the tax year | (a) The total income of the joint family up to the date of partition is assessed as if no partition had taken place; and (b) each member or group of members, in addition to any tax for which he or it may be separately liable and irrespective of anything contained against Schedule III (Table: serial number 1), is jointly and severally liable for the tax on the income so assessed |
| (5) | After the expiry of the tax year | The total income of that tax year of the joint family is assessed as if no partition had taken place, and sub-section (4)(b) applies so far as may be |
Both rows say the same thing in effect: the HUF is taxed on the income for the period before the partition as one family, and the members are jointly and severally liable for that tax. "Jointly and severally" means that the revenue can recover the whole from any one of them, subject to sub-section (9) below on how several liability is measured.
Sub-section (6): partition found after assessment
Irrespective of anything in the section, if the Assessing Officer finds, after completing the assessment of an HUF, that the family has already effected a partition, total or partial, he proceeds to recover the tax from every person who was a member of the family before the partition, and every such person is jointly and severally liable for the tax on the income so assessed.
Sub-section (7): penalty, interest and other sums
The section applies, so far as may be, to the levy and collection of any penalty, interest, fine or other sum in respect of any period up to the date of the partition, whether total or partial, as it applies to the levy and collection of tax for that period.
Sub-section (8): partial partition after 31 December 1978
Irrespective of the foregoing provisions, where a partial partition has taken place after 31 December 1978 among the members of an HUF hitherto assessed as undivided:
- (a) a claim that such partial partition has taken place shall not be inquired into under sub-section (2), no finding under sub-section (3) shall be recorded that it took place, and any finding recorded at any time to that effect is null and void;
- (b) the family continues to be liable to be assessed under the Act as if no such partial partition had taken place; and
- (c) each member or group of members of the family immediately before the partial partition, and the family, are jointly and severally liable for any tax, penalty, interest, fine or other sum payable by the family for any period, whether before or after such partial partition.
This is the central restriction in the section: a partial partition after that date is not recognised for tax. The date is printed in the Act and is quoted as printed.
Sub-section (9): several liability
The several liability of a member or group of members is computed according to the portion of the joint family property allotted to him or it at the partition, whether total or partial, and the Act applies accordingly.
Sub-section (10): meaning of partition
| Term | Meaning |
|---|---|
| "partition" (i) | Where the property admits of a physical division, a physical division of the property; but a physical division of the income without a physical division of the property producing the income is not a partition |
| "partition" (ii) | Where the property does not admit of a physical division, such division as the property admits of; but a mere severance of status is not a partition |
| "partial partition" | A partition which is partial as regards the persons constituting the HUF, or the properties belonging to it, or both |
So dividing the income, or declaring a severance of status, does not amount to a partition. For other rules on HUFs and successions, see our article on sections 313 and 314. If your family has divided property and the tax position is unclear, our income tax return filing team can help you work out what to claim.
A worked example
Names, dates and amounts are assumed.
Total partition during the tax year. The Menon HUF, assessed as undivided, divides its land and shares among three brothers on 1 October of the tax year. The HUF's income for 1 April to 30 September is Rs. 6,00,000.
- At assessment under section 270 or 271 a member claims the partition. The Assessing Officer gives notice to all members, inquires, and records a finding of total partition with the date 1 October.
- Under sub-section (4)(a), the income up to 1 October is assessed on the HUF as if no partition had taken place.
- Under sub-section (4)(b), each of the three brothers, in addition to any tax separately payable, is jointly and severally liable for the tax on the Rs. 6,00,000.
- Under sub-section (9), if one brother was allotted property worth 40 per cent of the joint family property at partition, his several liability is computed by reference to that portion. (The 40 per cent is an assumed figure for the illustration.)
Partial partition. If instead only the shares were divided among two of the brothers and the land stayed joint, this is a partial partition. If it took place after 31 December 1978 (as it would here), sub-section (8) says the claim is not inquired into, the HUF continues to be assessed as if no partial partition had occurred, and the members immediately before it and the HUF are jointly and severally liable for the tax for any period, before or after.
Partition found after assessment. Suppose the assessment of the HUF is completed and the Assessing Officer then finds a total partition had been effected earlier. Under sub-section (6) he recovers the tax from every person who was a member before the partition.
Need help with an HUF partition?
How the family's property is divided, and when, decides whether the partition counts for tax and who answers for the tax of the earlier period. If you are planning a division, or have received a notice of inquiry into one, our team can help you prepare the facts and the response. See our income tax return filing service.
Key takeaways
- A Hindu family assessed as undivided is deemed to continue as an HUF unless the Assessing Officer records a finding of partition.
- The claim is inquired into at assessment under section 270 or 271, after notice to all members.
- When a partition during the tax year is found, income up to the date of partition is assessed as if there had been none; members are jointly and severally liable for the tax.
- A partial partition after 31 December 1978 is not inquired into, and any finding to that effect is null and void.
- Several liability follows the portion of the joint family property allotted to the member or group.
- A division of income without a physical division of property, or a mere severance of status, is not a partition.
Read next
- Sections 313 and 314: succession to business and reorganisation orders
- Sections 302 and 312: legal representatives and executors
- Section 270: assessment
- Chapter XVII: special provisions relating to certain persons
Disclaimer: Based on the Income-tax Act, 2025 (30 of 2025) as amended by the Finance Act, 2026, as consulted on 2 October 2026. It explains the words of the Act only; the Income-tax Rules, 2026, notifications, circulars, later amendments and the way the tax authorities and courts apply these provisions should be checked. This article is general information, not legal advice; check the official text before acting.