How to report off market credit transaction in ITR form

hi @Quicko ,
in last financial year, i have received 5 mutual fund portfolio from my wife through off market transfer, after few months in the same financial year, i have sent 1 mutual fund portfolio back to my wife, no mutual fund units were sold in the previous financial year. How to report the transfer on ITR form?, as i have received value (say 10 lakhs) from my wife and transferred value (say 2 lakhs) back to my wife account through off market demat transfer.
My questions:

  1. Do i need not mention the transaction as no realisation was involved?
    or
  2. Do I need to mention 10 lakhs in exempted income ,as gift is received from spouse?
    or
  3. Do I need to mention 8 lakhs in exempted income [after netting] ?
    help is greatly appreciated. Thank you

Hey @A_K_RAGHAVENDRAN,

Yes, mutual funds received by you from your wife worth ₹10 lakh have to be reported as gifts received in the ITR form. However, there will be no capital gains on the same and the income will be exempted from taxes.
Moreover, you cannot net off. Your spouse needs to report ₹2 lakhs as a gift received in their ITR.

Hope this helps!

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