Showing Gift from relative in ITR for this year

This query is : Resolved

Quick Summary

A gift of mutual fund units to a spouse is not immediately taxable. If the units are not redeemed, clubbing does not apply yet. The recipient may disclose the gift under Schedule EI as a receipt not in the nature of income to explain the AIS off-market credit.

Ritesh

Ritesh (Querist)
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01 July 2026 Hello Sir ,
I have transferred Mutual Fund to my wife of 1L in Aug 2025. So off Market Credit transaction is of 1 L is showing on her AIS/TIS.

If we need to declare this in ITR1 (Schedule EI , other sections (Receipt not in nature of Income ) ? Or no need to show this .

Aashok Kumar Sharma

Aashok Kumar Sharma

(Expert)
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01 July 2026 No immediate tax is due on the transfer of ₹1 lakh.

Clubbing applies: Any profit or income earned by your wife from these Mutual Funds must be added to your own taxable income.

ITR filing: You cannot use ITR-1 to report this; you should use ITR-2 or ITR-3 to correctly account for the clubbed income and ensure full compliance. It is advisable to maintain a record (like a simple gift deed or transfer statement) to explain the origin of the funds if queried by the tax authorities.

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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01 July 2026 Do declare it in ITR in schedule EI. Also file feedback in AIS with similar option.

Ritesh

Ritesh (Querist)
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01 July 2026 Thank you sir Dhiaraj sir and Aashok sir .

As of now Mutual fund is now sold so Clubbing not applicable. Even if clubbing Applicable it it will be me so I will file ITR2 . But as my wife is having salary income below 10L and capital gain income is less than 1.25 . She should filled ITR1 please clarify.
Also As of now I just want to declare exempt income to her account to avoid query form ITD for off Market Credit transaction. So can I declare it in ITR against schedule EI against other and sub catagory Receipt not in the nature is income (This category just recently added by ITD)

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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02 July 2026 Whether the MF units redeemed from your wife's account after your transfer?

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