New Delhi, Aug. 18 -- Opening a joint bank account with a spouse or parent can make it easier to manage your finances, but it can also create tax headaches unless handled carefully. Here are a few examples that illustrate this.

Mr. A holds a joint bank account with his non-working spouse, who is the primary holder. Though Mr. A deposits the funds, the bank may still report the interest income in the spouse's name, since most banks levy tax deducted at source (TDS) in the name of the first holder, irrespective of who contributed to the funds.

"This often tempts working spouses to shift income to non-working partners, whose taxable income may fall below the threshold. But legally, the income is taxable in the hands of the earner," said ch...