Gift to mother in law

I want to gift NCD/bonds of amount 3.5 lakhs to my mother in law,

what will be the tax implications ?

The NCD/bonds give interest annually, will there be any clubbing implications ?

Mother in law income is below tax threshold. I am in 20% tax bracket.

1. Will I or her needs to pay tax at the time of gift ?

2. Will the interest income needs to be clubbed with my income every year ?

Regards,