Portfolio Management Schemes

[NIKITA JAIN]

We have clients who have invested in Portfolio Management Schemes floated by Motilal Oswal Fund. We have the following queries with regards to treatment with respect of Income Tax.

1. What head should the Income be claimed under. Is profit on sale of share by the Fund Manager be claimed as Short Term capital gains ?

2. Are management charges and other charges deductible as expenses against the short term capital gains ?

3. Are management charges subject to TDS if the Assesse (Investor of PMS) is an Individual/HUF liable to tax audit under Section 44AB ?

AI Summary

Classification of portfolio management scheme income and deductibility of management charges, including TDS applicability for audited investors.
Classification of income from Portfolio Management Schemes examines whether profits from sale of securities managed by the fund manager constitute short term capital gains, whether management and other scheme charges are deductible against such gains, and whether management charges attract tax deduction at source when the investor is an individual or HUF liable to tax audit.