The Indian Independence Act of 1948 (1947 C. 30 (10 and 11 G.O.)) is an Act of the Parliament of the United Kingdom , which has divided British India into two new kingdoms, the Kingdom of India and the Kingdom of Pakistan. The Act received royal assent on 18 July 1947 , and thus the territories of India and Pakistan (then East and West Pakistan , now Bangladesh and Pakistan) were created in 1947. Representatives of the Indian National Congress , the All India Muslim League , and the legislature of the Sikh community signed an agreement with **** Louis Mountbatten , known as the 3rd June Plan or Mountbatten Plan . This plan was the last plan for independence.