Hi
Say I am transferring 10 lakhs worth shares/ETFs to my wife this week. She receives them and sell it next week or month, so it is Short-Term Capital Gain/Loss as the case may be. Clubbing of income applies and I take entire loss/profit in my ITR. Suppose, she sells it for 10.2 lakh, 20000 is my profit and if she sells it for 9.8 lakh, 20000 is my loss. Now, say she sells it for 9.8 lakhs and I report a loss of 20k in my ITR. Now, what happens to this 9.8 lakh available with her. Does this money now entirely belong to her. If she buys shares/ETFs for 9.8 lakh again or does trading with F&O and incurs profit/loss, does clubbing of income again apply to me? how many times does this clubbing of income cycle go on? or is it now full taxation in her hands after this one clubbing cycle?