Full Partition of HUF u/s 171

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This discussion clarifies the process of fully partitioning a Hindu Undivided Family (HUF), particularly when only movable assets like Fixed Deposits are involved. It addresses whether a partition is considered 'full' even if one asset requires a book transfer and will mature later. The query also seeks information on the online procedure for filing the Memorandum of Confirmation of Total Partition with the Assessing Officer under Section 171 of the Income Tax Act, 1961, and how partitioned shares are assessed post-division.

Tushar Acharya

Tushar Acharya (Querist)
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19 September 2020 I am, being Karta of HUF, going to make full Partition of HUF this month.
There is no immovable property in HUF. Only FDs are there. Most of FDs are matured and amounts are transferred to coparceners by book entries as well as bank transfer. But one tax saving FD maturing after 3 years transferred to coparcener by book entry but not possible to transfer amount by bank. Interest on tax saving FD will be received by HUF in future also. Can we say it is full Partition?
Onus for passing order u/s. 171 lies on assessee. What is the online procedure for the same?

CA. Nirmal Ghorawat

CA. Nirmal Ghorawat (Expert)
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26 March 2021 Partial partition as to assets or as to coparceners where all assets are not divided by metes and bounds is not recognised under Income Tax Act by virtue of Section 171(9).

My post Partition of HUF : https://www.canirmalg.com/2017/04/22/partition-of-a-hindu-undivided-family/

Memorandum of Confirmation of Total Partition may be prepared after total partition by metes and bound and filed with the Assessing Officer to claim partition u/s 171 of the Income Tax Act, 1961.