Clubbing of trading Income tax

Hi Experts,

I have transferred money to my relatives account, have done the f&o trading in their account and earned some net income. Now I need to club that trading income and pay tax as per my slab.

Question is, since the net income in my relatives account is more than 5 Lacs, does my relative also need to pay income tax ? how can my relative file and convey to tax department that the tax is already clubbed in my hands ?

 

 

 

 

Replies (5)
Quick Summary
If you've earned trading income in a relative's account due to revocable transfer, the income is clubbed under your tax slab. Your relative generally won't need to pay tax on this income unless they have other income exceeding the exemption limit. You should declare this income under the clubbing provisions when filing your own tax return.

Since it is revocable transfer therefore clubbing provisions will get attracted.

Since the income is being clubbed in your income therefore it will not be taxed in the hands of your relative.

 

So we should not file the return for my relative even though income is above 5 lacs ? or do we need to file and there is any option to indicate that the income is already clubbed with son-in-law account ?

No your father is not required to file ITR for this income unless he has his other income exceeding minimum exemption limit.

But the income is exceeding the minimum exemption limit, so how do i file the return for her and indicate that the tax is already clubbed through my hands ?

File the return for other income, check  whether there is any provision in the ITR to show for income already clubbed.

As per my opinion, there is no such provision in the ITR.

While filing your return show the said income under clubbing head/subhead.

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
07 October 2026
Senior Account Manager

Amplio Invest

Mumbai

M.Com

View Details
Company
16 September 2026
Internal Audit - Team Lead

Consulting & Beyond

Chennai

CA

View Details
Company
12 October 2026
Chartered Accountant - Internal Audit

HKC | Chartered Accountants & Business Advisors

Ludhiana

CA

View Details
Company
06 October 2026
Assistant Manager - Audit and Compliance

Ravi K Jain & Co

Noida

Others

View Details
Company
08 October 2026
Accounts and Tax Associate

POOJA R TELI & CO

Pune

CA Inter

View Details
Company
12 October 2026
Finance

I-Genext Consulting Private Limited

New Delhi

CA

View Details
Company
ARTICLESHIP 21 September 2026
CA Article Assistant

KK & Company Chartered Accountant

Pune

CA Inter

View Details
Company
ARTICLESHIP 28 September 2026
Junior Accountant

J S P M & Associates LLP

Pune

B.Com

View Details