Funds transferred from an NRI husband to his spouse in India are generally not taxable in the recipient's hands as they are considered gifts from a relative. However, any income generated by the recipient from investing these gifted funds will be clubbed and taxed in the hands of the husband. Since he is an NRI, only India-sourced income will be taxable in India. There's a differing view on whether subsequent reinvested income is taxable in the recipient's hands.