Sunday, September 28, 2014

Changed Tenures of FMPs

 

Changed Tenures of FMPs

AMCs have extended the tenures of existing FMPs to ease investors from the tax burdens due to changes in the tax laws

 

Asset Management Companies have extended the tenures of their existing FMPs only in order to ease investors of the tax burden arising from the recent changes on capital gains tax. Therefore the extended FMPs will remain a single investment and capital gains arising from them will be treated as long term capital gains, once the FMPs complete three years from the original date of investment.

 

As per the new guidelines, short term capital gains from FMPs earned within 36 months, would be added to your income and taxed according to the applicable slab rate. Whereas, long term capital gains would be taxed @ 20% after providing for indexation.

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