Views by Navin Jain, Co-Founder and CEO of Neonest Finserve
on a story ” Senior Citizens Investing Traps Hidden In Joint Accounts: Legal And Tax Landmines No One Talks”
“Joint accounts may appear convenient for senior citizens-especially when involving adult children for ease of operation-but they often conceal complex legal and tax traps,” says Navin Jain, Co-Founder and CEO of Neonest Finserve. “A 2023 SEBI investor behavior survey found over 30% of senior investors use joint accounts to manage assets, but very few understand the implications if either party passes away or becomes incapacitated.” In joint holding, ownership rights aren’t always equal or clear. If the senior passes away, the account may not automatically transfer to heirs under the Will but instead to the surviving holder, creating potential for family disputes. From a tax perspective, income from such accounts may be attributed entirely to the senior citizen, but if misreported, both parties could face scrutiny under Section 64 of the Income Tax Act. Moreover, banks and brokers follow varying operational norms, further complicating access and control. “It’s essential that senior investors are advised on setting up nominee-based, clearly documented investment accounts or consider a trust structure for large holdings. Convenience should never override clarity,” Navin added
