POSTED BY March 29, 2014 10:08 pm COMMENTS (2)ON
I am bit confused about the Financial year in which I should consider income from my Fixed Maturity plan (FMP). Here are the details:
I invested in an FMP on 15th March 2013, this will mature on 4th April 2014 (so i get double indexation). Thus realization of income will happen in FY 2014-15. We know that for cumulative FDs, one considers the accrued income in every FY and pays taxes on it, even though actual realization may happen later. So similarly do I need to consider my FMP accrued income while paying tax this year i.e under FY 2013-14? Or everything to be paid in FY 2014-15?
Note that am aware of the tax computation via indexation on debt funds, my only confusion is under which FY should I consider the income.
Thanks in advance!