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Section 40: Where intestate leaves lineal descendants not all in same degree of kindred to him, and those through whom the more remote are descended are dead
(1) If the intestate has left lineal descendants who do not all stand in the same degree of kindred to him, and the persons through whom the more remote are descended from him are dead, the property shall be divided into such a number of equal shares as may correspond with the number of the lineal descendants of the intestate who either stood in the nearest degree of kindred to him at his decease, or, having been of the like degree of kindred to him, died before him, leaving lineal descendants who survived him.
Source: official text of The Indian Succession Act, 1925 as published on India Code (PDF). All sections of the Indian Succession Act, 1925.