Income tax on Fixed Maturity Plans (FMP)

POSTED BY VG ON March 29, 2014 10:08 pm COMMENTS (2)


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!





2 replies on this article “Income tax on Fixed Maturity Plans (FMP)”

  1. Vaibhav Goyal says:

    Yes I thought the same. Thanks for confirming Ashal!

  2. ashalanshu says:

    Dear Vaibhav, in case of MFs (FMPs are also MFs), the redemption date is important hence for the given case, the LTCGs from FMP ‘ll be the income in FY 2014-2015 for the given example.



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