New Delhi, May 15 -- Gifting mutual fund (MF) units to your loved ones is a great way of showing your affection. But gifting MFs does not work like other assets such as land, buildings, jewellery and cash. You have to follow clearly laid down procedures specified by the regulators. Here is a guide on how MFs can be gifted and the tax implications for the donor and the receiver.

Unlike gifting assets such as property and gold, MFs cannot be transferred easily. If you have a demat account, you can gift your MF units to your loved ones by following some simple steps. If the MF units are not held in a demat account, they have to be converted into a demat form as only after this they can be transferred to the beneficiary.

You have to first m...