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 ?
Tax Treatment for Motilal Oswal Fund Investments: Capital Gains, Deductible Charges, and TDS Under Section 44AB A user inquired about the income tax treatment for clients invested in Portfolio Management Schemes by Motilal Oswal Fund. The queries include under which head the income should be claimed, specifically if the profit from share sales by the Fund Manager qualifies as short-term capital gains. Additionally, the user seeks clarification on whether management and other charges are deductible as expenses against short-term capital gains and if these charges are subject to TDS when the investor, an individual or HUF, is liable to tax audit under Section 44AB. (AI Summary)
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