What is Fixed Maturity Plan?
Certain mutual funds have fixed maturity period.
These are called Fixed Maturity Plans
Treatment on Extension of Period
If Mutual Fund Companies offer the period to extend the period of mutual funds (call roll over of mutual fund)
If unit holder avails this option to extend the period,it shall not be regarded as transfer and no capital gain will be computed.
Capital Gain will be computed at the time of redemption/sale/opting out of the scheme
Period of holding in case of unlisted shares and units of a mutual fund [other than an equity oriented
(fund)] to be more than thirty-six months to qualify as long term capital asset