sitemapHome | Registration | Job Portal for CA's | Expert Exchange | Currency Converter | Post Matrimonial Ads | Post Property Ads
News shortcuts: From the Courts | News Headlines | VAT (Value Added Tax) | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing | GST - Goods and Services Tax
Latest Expert Exchange
News Headlines »
 Here’s all you need to know New Income Tax return for salaried class available on IT portal
 What to do if you missed the (second) tax deadline
 Income-tax (5th Amendment) Rules, 2018 - Notification under section 9A (3) of the Income-tax Act, 1961 in respect of Fund Manager Regime
 Income Tax department warns salaried class again filing wrong ITRs
 ITR-1 form for AY 18-19 now available for e-filing
 New Income Tax Return Form for Salaried Class available in Portal
 Income Tax Return: ITR-1 ready for e-filing, says I-T department
 6 Tax changes you need to keep in mind while filing ITR for FY17-18 Income Tax Return efiling
 Income-tax (5th Amendment) Rules, 2018
 Last-minute tax tips for late filers
 What demonetisation did to tax collections

Tax liability of PMS investors won`t go up
June, 21st 2007
There will be no increase in the tax liability of individuals gaining from investment in shares through portfolio management services (PMS).
 
Income-tax officials are of the view that PMS is like a mutual fund which attracts only short-term capital gains tax of 10 per cent.
 
Following a circular by the Income-Tax Department on June 15 on tax treatment of shares, there were concerns that the investors holding stocks through PMS might have to segregate their investment portfolio into capital assets and trading assets.
 
At present, profits made through the PMS route are treated as investments and attract short-term capital gains tax of 10 per cent. However, the tax liability will go up to 30 per cent if the profits fall under income from trading of shares.
 
The tax treatment given to PMS investors is same as that given to mutual funds, income-tax officials said. The common factor being that in both cases the investor has no control over purchase or sale of shares.
 
However, in PMS stocks are bought and sold in the name of the investor, while in mutual funds investments are made in the name of the mutual fund and units of the schemes are allotted to the investor.
 
But the income-tax department cannot give a definite direction to the assessing officers, who take a view according to the facts and circumstances of a particular case. But while doing so, the assessing officer is bound to give reasons, sources said.
 
Experts say the discretionary powers given to the assessing officers is the reason behind the confusion. The Income-Tax Department should issue a circular mentioning what constitutes capital gains and trading income, said Gaurav Taneja, partner, Ernst & Young.
Home | About Us | Terms and Conditions | Contact Us
Copyright 2018 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Binarysoft Technologies - Our Portfolio

Transfer Pricing | International Taxation | Business Consulting | Corporate Compliance and Consulting | Assurance and Risk Advisory | Indirect Taxes | Direct Taxes | Transaction Advisory | Regular Compliance and Reporting | Tax Assessments | International Taxation Advisory | Capital Structuring | Withholding tax advisory | Expatriate Tax Reporting | Litigation | Badges | Club Badges | Seals | Military Insignias | Emblems | Family Crest | Software Development India | Software Development Company | SEO Company | Web Application Development | MLM Software | MLM Solutions