Co-holders Face I-T Heat Over MFs, High-Value Assets

In India, it's common to hold assets, investments, and even bank accounts jointly with a spouse or child. This allows easy transfer or encashment on the death of the primary holder. But joint holders are now facing trouble, due to the Income Tax department's systems and procedures.

- GAUTAM NAYAK

In India, it's common to hold assets, investments, and even bank accounts jointly with a spouse or child. This allows easy transfer or encashment on the death of the primary holder. But joint holders are now facing trouble, due to the Income Tax department's systems and procedures. Every mutual fund is required to file an annual statement of financial transactions (SFT) with the I-T department, reflecting names of persons who have acquired units of ₹10 lakh or more during the year.

Similarly, reporting is required by every company issuing bonds or debentures or shares of ₹10 lakh or more to a person, every listed company buying back shares of ₹10 lakh or more from a person, the Registrar or Sub-Registrar of Assurances in respect of transactions of purchase of immovable property of ₹30 lakh or more, are required to report such transactions in the SFT. These transactions are then collated PAN-wise by the department and reflected in the investors', purchasers or sellers' PAN.