After investing in a property or mutual fund through a joint account, you may face difficulties while filing income tax. This may be due to the CBDT not giving complete clarity about a rule.
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If you are investing jointly with your husband, child or parents in mutual funds or any property, then you can get a notice from the Income Tax Department. To know about this kind of disturbance, you have to check Form 26AS. Actually, when any transaction takes place in the name of more than one person, according to the rules of CBDT, this amount of transaction is reported in the name of both account holders.
In any one year, if a person makes a transaction of 10 lakh rupees through a mutual fund, then the mutual fund house has to inform it directly to the tax department. In such a situation, if a transaction exceeds this limit is done from a joint account, then CBDT demands tax liability from all the account holders at the individual level.
A similar case has also come up in Delhi. Darussal, a couple was jointly investing in a mutual account. This amount of transaction by him was Rs 11 lakh. Now the problem came that even after having a joint account, this amount is showing separately in the name of both.
In other words, the tax department believes that both husband and wife have invested Rs 11 lakh separately. Whereas, the reality is something else. Both people have invested only 11 lakh rupees in total.
AMFI gave information to CBDT
The Association of Mutual Funds of India (AMFI), the industry trade body of mutual funds, has put this issue before the CBDT. So far no clear information has been received from CBDT about this. No announcement was made about this in the budget proposal as well.
AMFI told CBDT that tax reporting in Form 26AS is incorrect and misleading. In this, information about the correct amount of investment has not been given.
With the start of the new financial year, this matter is very important for taxpayers. In the new financial year, complete information about mutual funds holdings, capital gains and deduction of TDS by the bank will be given directly to the tax department. After this, these information will already be filled in the Income Tax Returns form.
How will this problem go away?
First of all, the Central Board of Direct Taxes should give clear information about this from mutual funds and real-estate.
As a taxpayer, you should check thoroughly about your and family’s Form 26AS on the NSDL website.
This can be found on the tax filing portal. In one such case in a Moneycontrol report, a tax expert has been quoted saying that if any such information appears in Form 26AS, then the non-earning member can delete this information from the pre-filled form. . There is an option to change this in pre-field returns.
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