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There is a need to make a representation to the MOF and ask them to instruct the department not to trouble the investors holding joint status in mutual fund. Once the notice is sent there is a lot of waste of time energy and resources to complete the case. Though nothing is affecting the revenue of the department but the investors'' revenue does get affected badly.

as per question as well as answered by verious expert as well as ARN holders & noted the contains. as per i Tax act every person has to be disclosed their income. if 1st holder are unable to submit Its details how they had invested the said amount. then ITO send the notice to IInd & IIIrd person &/or holder of soa can send notice by I T deptt. only we have to submit such explain. if you are unable to show the sources of income, definately you / all investor recorded on SOA may in trouble. deptt wants to explanation regarding investment only if you have put up satisfactorily there is no problem before IFA. IFA understand if investor make payment by chq / dd why should worry. d ''not take tension while canvasing m f activity.

It is ridicule that Income Tax Department is issuing notices to second and third holders. It is evident that the prime responsibility is of First holder in all respect. The redemption is done and the amount is remitted to bank account of First holder. No doubt, KYC formalities are done for all the Holders and the PAN details are provided for all the holders. The joint holders either in shape of second or third is done for the eventuality to pass on the benefits for either or survivor. The payment for the purchase is made by the First holder from his or her account. There are majority of the Bank accounts which are operated jointly and the payments for purchases are made by the first holder with the intentions that he or she has not to declare such investment in Income Tax Returns. It is such a tricky issue which needs to be decided at higher level.

It is really a headache.

No Problem. It is a procedure to ask for details. If any investor either jointly or sole (Single) ought to furnish the details of investment, if his total investment is above Rs.2.00Lakhs in any year. In the eye law every one in a joint holder is accountable. Now, regarding notices to joint holders, of not reporting the investment details. if First Applicant has declared it in his filings, the same may be informed for the Notices received.

Dear ALL, Simple Solution we are having in practice for this : Just a submit a plain letter mentioning that the said person (to whom letter is send by Income Tax) is a Second Holder or Third Holder in that particular folio. (if you think suitable kindly submit a SOA along with letter)

How is it that I.T. dept send notices to 2nd and 3rd holders? Only 1st holder is answerable.

It is not neccessary

This is one of the reason why people hesiated to invest in mutual fund as the limit of Rs 200000 is very low for AIR information , it should be revised and should be cleared that benefionary intrest is of only of first holder. Investor had to produce last three year income tax return and capital account of all applicants showing source of investment even if he declares that first holder is benefitionay of above investments this is only harrasment. AMFI AND SEBI should talk to CBDT for above to attaract mutual fund investment only advestisment to invest in mutual fund is not sufficient . Concncrete and honest efforts should be made for above.

provide capital a/c. of all three joint holder to verify the capital source of this investment.

MONEY BELONGS TO FIRST APPLICANT ONLY OTHER APPLICANTS ARE FOR SAFETY

The Name of the second and third holder is given only for the purpose of any eventuality with first folder. In other words, it won''t be wrong if we say that they are just nominees. God knows what is the purpose of sending notices to 2nd and 3rd holders. This is nothing but discouraging small investors from entering in Mutual funds.

This is very big headache for investors as we advise them to add second & third holders in their folios to avoid any problem in futures in case of any mishap to the first holder. AMFI & SEBI both should take up this matter with CBDT for not sending notices to second & third holders on basis of AIR information filled with them. Second & third holder are only survivors and not owners.