I had invested in PNB fixed maturity plan but last budget tenure was increased to avoid tax and get indexation benefit. Now term is over. Will money invested come back automatically to account or will I have to close it? Will I have to pay tax after double indexation?
1 Answers
Hi,
Yes, FMPs are automatically terminated/redeemed upon maturity.
Gains from units older than 3 years is taxed at a flat 20% with indexed capital gain.
After the budget 2014-15, the long-term FMPs of one to three years has converted into short-term FMP. The capital gains arising from units purchased less than or equal to 3 years ago will be added to income and taxed as per slab.
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