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

  1. Income Tax
  2. Amendments Income Tax for November 2016 Exams

About the Author

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CA Maninder Singh
CA Maninder Singh is a Chartered Accountant for the past 11 years. He also provides Accounts Tax GST Training in Delhi and Pune.