Question

How can losses incurred in Fixed Maturity Plans (FMPs) after double indexation be treated?

a.

Set off against other FMP losses

b.

Ignored for tax purposes

c.

Set off against any other short- or long-term capital gain

d.

Carried forward indefinitely

Posted under IC 89 Management Accounting

Answer: (c).Set off against any other short- or long-term capital gain Explanation:Losses incurred in Fixed Maturity Plans (FMPs) after double indexation can be set off against any other short- or long-term capital gain over the next eight years. This flexibility provides investors with potential tax advantages.

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Q. How can losses incurred in Fixed Maturity Plans (FMPs) after double indexation be treated?
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