New Delhi, July 6 -- In India, it is common practice to have all assets and investments, and even bank accounts, in joint names with a spouse or child. This makes it convenient to transfer the asset or investment to the spouse or child or encashed in the event of the demise of the original investor, who would normally be the first holder of the asset or investment. However, dark clouds are now hovering over such joint holders, thanks to the systems and procedures of the Income Tax department.

Every mutual fund is required to file an annual statement of financial transactions (SFT) with the Income Tax department, reflecting the names of persons who have acquired units of Rs.10 lakh or more during the year.

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