Can a person be member of Multiple HUF’s ?

Is it safe to be part of multiple HUF’s ….. Watch this … for some judgements and views

Tax implication of Partial Partition of HUF

Section 171, as originally enacted, applied to total as well as partial partition. However, sub-section (9) inserted by Finance (No 2) Act, 1980 recognises only complete partition. A Partial partition took place after 31.12.1978 is not recognized under the Income Tax Act, 1961 (Section 179(9). Thus partial partition effected after this date is not given effect to by the Assessing Officer even though such partition may be legal as per Hindu Law.

Hence, for the purpose of income-tax assessment, the HUF shall be deemed to continue notwithstanding the partial partition and the income from all properties shall continue to be assessed in the hands of erstwhile HUF. Therefore even after the Partial partition, the income of the HUF shall be liable to be assessed under the Income-tax Act as if no partition had taken place.

Setting apart of certain assets of HUF in favour of certain coparceners on a condition that no further claim in properties will be made by them, is a partition under Income Tax Act

Setting apart of certain assets of HUF in favor of certain coparceners on the condition that no further claim in properties will be made by them, is nothing but a partial partition and not a family arrangement and not recognized in view of section 171(9) of the Act.

 

source 1 : Supreme Court Judgement : https://main.sci.gov.in/jonew/judis/31304.pdf

Source 2 : https://cavinaymittal.com/Blog/685/Income_Tax_Act_1961.aspx

Source 3: https://incometaxmanagement.com/Pages/HUF/23-Concept-of-Multiple-HUFs.html