Partition of HUFs

A joint Hindu family springs from a common male ancestor and consists of his descendants in the male line,
their spouses and unmarried daughters. Every male Hindu even when he is a member of joint Hindu family
can and does constitute a joint family with his own descendants, a family which nevertheless is a part of the
bigger family of which he is a member. Such a smaller family of the Hindu male who is himself a member
of the bigger family constitutes a branch of the main family. Similarly sub-branches of the family can be
formed by each of his male descendants. Each of these branches or sub-branches is in itself a HUF.

Partition under the Income-Tax Act is the ascertainment of individual shares of coparceners in the HUF and
a later division by allotting separate properties to the members. The partition is a mere agreement to divide
the properties and, therefore, does not require registration unless the division is through a written instrument.
If the partition is oral, however, a memorandum of partition should be recorded. The memorandum does not
have to be registered. On a partition between the members of the joint family, the shares are to be allotted as
under.

* On a partition of a HUF, which includes the father, mother, and sons, the mother has no right to claim
partition, but when the partition is actually effected she takes the share equal to the sons.

* On a partition between a father and his sons where the mother is not living, each son takes a share equal to
that of the father.

* On a partition of a joint family consisting of brothers they take equal shares.

* Each branch takes per stripe as regards every other branch, but members of each branch take per capita as
regards each other.

* None of the unmarried daughters has a right to share on partition but the partition should provide for their
maintenance and education till their marriage and for their marriage expenses. In Maharashtra, Karnataka,
Andhra Pradesh and Tamil Nadu, daughters are also entitled to a share equal to that of the son on partition of
the HUF property. This is not applicable in Maharashtra where the daughter is married before June 22, 1994,
in Karnataka, if the marriage of the daughter is before July 28, 1994, in Andhra Pradesh if the marriage of
the daughter is before September 5, 1985, and in Tamil Nadu if the marriage of the daughter is before March
25, 1989.

The I-T Act does not recognise a partial partition. An unequal partition is, however, possible. Since an
unequal partition is permissible, it might be possible that one of the coparceners may renounce his
coparcenary interest in the coparcenary property as an alternative to a partial partition which is not
recognised. The renunciation is an unilateral act of the coparcener but has to be complete and genuine. The
coparcener relinquishing can demand maintenance but cannot relinquish in favour of a particular individual
member of the family. It is important to note in this context that unless an order is obtained from the
Assessing Officer recognising partition, the income from property shall continue to be assessed as HUF
income.

Reunion of HUFs

Even after a total partition, it is possible for the coparceners to reunite undoing the earlier partition among
themselves. The effect of such reunion is to bring back to life, the former status of the HUF. A reunion can
only take place between persons who are parties to the original partition. If a joint Hindu family separates,
the family or any member of it may agree to reunite as a joint Hindu family.

The conditions precedent for a valid reunion under the Hindu Law are:

* There must have been a previous state of union. Reunion is possible only among persons who were on
earlier date members of the HUF.

* There must have been a partition in fact.

* The reunion must be effected by the parties or some of them who had made the partition.

* There must be a junction of estate and reunion of property because reunion is not merely an agreement to
live together as tenants in common.

Reunion is intended to bring about a fusion in the interest and in the estate among the divided members of an
erstwhile HUF once again. Therefore, reunion creates a right on all the reuniting members in the joint family
properties which is the subject matter of partition among them to the extent they were not dissipated before
the union.

There should, however, be a proper agreement between the parties so that the intention to revert to the
original status of the HUF is expressed clearly and unambiguously. The burden of proof of reunion is on the
party asserting the reunion and must be discharged along with proof by the persons reuniting. It should also
be remembered that if the partition comprising immovable properties was by a registered deed then the
reunion, which follows if it is to be valid in law, must also be effected by a registered deed.

In a reunion, a few of the properties of the former HUF and also a few members of the former HUF may
remain out of the reunited HUF. Thus, one may observe that it is possible that a partial partition which is not
otherwise recognised by the tax law may to a limited extent be possible by the use of the reunion of a HUF.