Tax notices for joint investments: Why, how to fix
If you're a joint holder on an investment (even if you didn't actually put in the money), you might be surprised by a tax notice.
Banks and financial institutions now report certain transactions under every joint holder's PAN, not just the main investor.
This means even non-earning folks like students, homemakers, or grandparents are getting flagged for activity they weren't really involved in—all thanks to new reporting rules that trigger mismatches in your Annual Information Statement (AIS).
How to resolve the issue
If your AIS shows transactions that aren't yours, check your entries and send feedback with proof like bank statements or ownership declarations. You can also file a revised return if needed.
Want to skip this headache next time? Consider listing someone as a nominee instead of making them a joint holder—nominees don't get reported the same way, which keeps things simpler and avoids unnecessary tax trouble.