If my wife buys a mutual fund from her savings (tax is paid on those savings) and then she transfers it to me immediately; will there be any tax implications on this as the mutual funds are being given to husband, which is being shown as gift by wife to husband?
—Tejas Shah
The answer to this question is exceedingly simple: the scenario that you are describing is just not possible. Units of a mutual fund cannot be transferred from one holder to another, nor can they be gifted by one person to another. Mutual funds are also not allowed to accept ‘third-party’ payments—meaning, you cannot use money from your wife’s bank account to make investments in your name.