Income tax can send notice if you buy a house with a partner, follow these 4 tips to avoid it

Joint Owner Tips for Property: If you are buying a property and getting your partner’s name registered in it, then it is very important to keep many things in mind.

New Delhi: Today, while buying a house, many people also get their partner’s name written. Most men get their female partner’s name written. By doing this, not only you but your female partner can also get into trouble. A slight mistake can get you an income tax notice. One such case has also come to light. This matter reached the court.

On August 4, 2025, the Bombay High Court gave relief to a wife. The Income Tax Department had accused her of tax evasion. It was alleged that her husband had made her the joint owner of a property worth Rs 6.75 crore in Mumbai. The husband had made the wife a joint owner only for convenience. But, she herself paid the entire amount of Rs 6.75 crore from HDFC Bank.

What did the wife say?

The husband’s bank statement and property papers showed that he was the real buyer. Therefore, the wife said that the notice of tax evasion should not be sent to him. But, the Income Tax officer did not listen to her and sent her a notice. Due to this, both the wife and the husband received a tax notice under section 148. The Bombay High Court gave relief to the wife. But, the notice sent to the husband is still pending. It will be heard separately.

What did the court say?

The Bombay High Court judge said, ‘When we look at all the documents, we do not understand how the Income Tax officers came to the conclusion that any income of the wife escaped tax for AY 2021-22 in this transaction. The wife had clearly stated that her income that year was only Rs 4,36,850. She also told the Income Tax Department that she did not contribute anything in buying the flat and all the money was given by her husband.’

What to do to avoid such a case?

According to Economic Times, Chartered Accountant (Dr.) Suresh Surana says, when there is joint ownership of property, the question often arises as to what is the responsibility of each co-owner. To avoid tax-related problems and notices, joint property owners can take some precautions.

1. State financial contribution

It is important that the financial contribution of each co-owner is clearly stated in the purchase agreement. In addition, it is also important to include the percentage of ownership of each owner. If one party pays more or the full price of the property, this should be clearly recorded.

2. Maintain financial records

All financial transactions related to the purchase of the property such as bank transfers, loan agreements and payment receipts should be well recorded and preserved. These records are proof of the source and legitimacy of the money used. They are very important in case of any investigation or inquiry by tax officials.

3. File tax returns correctly and clearly

While filing ITR, ensure that all information related to the property is disclosed correctly. If a co-owner has been added only for convenience and has not made any financial contribution, this should be clearly stated in any interaction with tax officials. Clear disclosure reduces the chances of misunderstanding and unnecessary tax levies.

4. Information in the agreement is important in this case

If the name of the co-owner is added only for love, affection, care or protection, without any financial contribution, then this should be clearly mentioned in the agreement. Also, it should be mentioned that the entire purchase amount has been paid by the main co-owner. In such cases, the property as well as the income from rent or capital gains should be declared in the ITR of the main owner only.

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