HUF partition: how and when to dissolve

Partition = dissolution of the HUF. Any coparcener can demand partition at any time. Partition can be total (HUF ends, assets distributed) or partial (some assets remain in HUF). Once partitioned, the HUF PAN is cancelled and each member gets their share as individual property.

Tax consequence: No capital gains tax on partition, shares are deemed received at original cost of acquisition. But future gains on partitioned assets are taxed individually. FIFO holding period applies.