Joint bank accounts can lead to tax troubles for seniors
Heads up if you're on a joint bank account (especially with parents or grandparents):
Chartered Accountants are flagging a tax rule that can cause duplicate reporting of big transactions.
This mostly impacts seniors who are listed as secondary holders, and even folks who don't usually file taxes might get surprise notices because of it.
What to do if you have a joint account
Rule 114E(2) makes banks report the full amount of any large deposit or transaction under every joint holder's name—not just the main earner.
Tax experts like Abhishek Soni warn this can show up as duplicate entries in your Annual Information Statement (AIS), possibly leading to confusion or even unwanted tax letters.
The advice? Double-check your AIS, keep clear records about whose money is whose, and consider filing taxes proactively if your account sees big movements.