Reg it compliance on spouse investment

If the query is for taxability of the interest income, for which TDS has been deducted...... Option II is OK

But it the query is for source of investment....... Option I is better.....

however as per clubbing provision, the interest income required to be shown as income in the hands of donor....

"The Income tax Department has received information on financial transactions/activities relating to AWUPNXXXXH for Financial Year 2016-17. As per records, you do not appear to have filed Income Tax Return for Assessment Year 2017-18 (relating to FY 2016-17)." Above is the message received... Q1: So I have to re submit my IT return ? ( Clubbed income ) Also , to mention source of income. However, it's just a text box given to explain source of income. Q2: How will they validate the response, being just a plain text content ? Q3: Why MF switch txns, are not tracked in 26 AS, though FD interest is traced there?Or is there limit like if profit is more than 2 lacs, it will be traced ? Thanks !

As per incomet tax act Secion 56, gifted amount to relative ( spouse ) is tax exempt. The income on the gifted amount is taxed on their hands only. 

Please clarify.!