Answer

1. F

   Facts

   If you give money to your spouse without adequate consideration and it is used to earn income, that income may be clubbed with yours. This makes the spouse's F&O profit taxable in your hands in many cases.

2. P

   Provisions and law

   • Sec 64 (now Sec 99)Clubbing of income, including income from assets transferred to a spouse
3. A

   Analysis

   If you transferred ₹10,00,000 to your wife and she made ₹2,00,000 F&O profit with it, that profit may be added to your income. Losses can also be clubbed. Keeping clear records of gifts and funds, or using a proper loan with interest, avoids confusion. Get advice before mixing accounts.

4. C

   Conclusion

   1. 1Trace the source of funds in the spouse's account
   2. 2Decide whether clubbing applies
   3. 3Report the income in the right return
   4. 4Keep documents for transfers between spouses

General guidance from TaxSavvy’s library of money processes. Laws change; your Savvy confirms the answer on your exact case before anything is filed.