Transfer of MF

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This query is : Resolved

Quick Summary

ransfer of mutual funds as gift to son is tax free for both. Transfer to third party is taxable in recipient hands. If transferred for consideration, capital gains tax applies to transferor. Similar rules apply to shares.

Thelappillil Linson

Thelappillil Linson (Querist)

12 March 2026 Sir / Madam, As per SEBI guidelines, the MF units can be transferred to own relations and even third parties. Does this trigger capital gains tax on me if I transfer to my son? Does this trigger capital gains tax if I transfer to third party? Hope this is the same case with the shares? Kindly advise.

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)

12 March 2026 If you gift it to your son, no tax liability on either, but in case of third party it will be taxable to the part receiving the gift..
In case of sale to son or any other person, cap gain tax will be liable to you.

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Thelappillil Linson

Thelappillil Linson (Querist)

12 March 2026 Thank you Sir. Hope it is not needed for me to provide any evidence to establish father son relationship for such transfer

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)

13 March 2026 No. Not at all..

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