New Delhi, Aug. 31 -- Adding a family member's name to a property is a common practice in India. A husband may add his wife, a son his mother, or a parent their child. Sometimes, a relative or even a close friend may be made a joint owner. In many such cases, the person whose name appears first may have paid the entire consideration, while the other person may not have contributed anything.

For a long time, such arrangements were largely a matter between family members and the registrars, with little involvement from the tax department. That is changing.

The tax department today receives information on property transactions from registrars and TDS filings. This can raise a fairly obvious question: if a person has acquired a property, do...