I had invested Rs13,500 on 25 February 2014 in a fixed maturity plan (FMP), which matured on 13 March 2017 and received Rs17,251.25. The gain was Rs3,751. As this was a debt investment, I need to pay tax on the gain. How much tax will I have to pay, with or without indexation? I want to invest this amount in other debt schemes but not in a closed-end scheme. I can remain invested for long but want liquidity in case of an emergency. Currently I am invested in Birla Sun Life Dynamic Bond Fund and ICICI Prudential Long Term Fund. Like in equity funds, do we need to spread our investments in debt funds as well?
—Subir Basu
