Latest Expert Exchange Queries
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) | Service Tax | Sales Tax | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Indirect Tax | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing
 
 
 
 
Popular Search: ARTICLES ON INPUT TAX CREDIT IN VAT :: VAT Audit :: cpt :: TDS :: TAX RATES - GOODS TAXABLE @ 4% :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: due date for vat payment :: empanelment :: list of goods taxed at 4% :: ACCOUNTING STANDARDS :: Central Excise rule to resale the machines to a new company :: VAT RATES :: articles on VAT and GST in India :: form 3cd :: ACCOUNTING STANDARD
 
 
News Headlines »
 How to link your Aadhaar and PAN details to file income-tax returns
 How to calculate capital gains tax on property sold at less than stamp value?
 Return Filing - Under GST, this is how you will file tax returns from July 1
 Income tax filing FAQs part 1
 Filing Income Tax Returns? Things To Keep In Mind As Deadline Approaches
 Filing of online return for 4th quarter of 2016-17- extension of period thereof.
 New tax accounting standards may reduce leeway for infrastructure companies
 GST – CONCEPT & STATUS – As on 01st May, 2017
 Govt extends VAT deadline, relief for developers
 Income Tax Appellate Tribunal Rules, 2017
 Got your Form 16? You should file income tax returns early to enjoy benefits

Portfolio management profits to be taxed at 10%
July, 19th 2006
This would be music to Portfolio Management Service (PMS) providers. Profits generated by portfolio management will be treated as investment income, and attract short term capital gains tax at the rate of 10%.

PMS profits will not be treated as business income, which would attract the applicable marginal rate of income tax. Around Rs 7,000 crore is churned annually by the PMS market.

The breather is expected as a part of the formal guidelines to be issued by the Central Board of Direct Taxes (CBDT) to its field formations on whether a person is a trader in stocks or an investor in stocks, soon.

Revenue department officials thought there was no reason to classify investors in PMS as traders, senior officials told ET. The income tax department had sought suggestions from the general public in May this year, to decide who should be treated as a trader in stocks and who should be treated as an investor.

The consultation had run into controversy immediately, as there was a presumption that foreign institutional investors (FIIs) too could be treated by assessing officers as traders in stocks, instead of investors, who are liable to pay only the 10% short term capital gains tax. Finance minister P Chidambaram subsequently clarified that there was no such move on FIIs.

CBDT has received numerous suggestions on the proposal, including the one to keep senior citizens dabbling in stock trading out of the proposed tax net. The PMS managers churn portfolio as per the price targets given by their clients. They, therefore, enter or exit scrips, when the price levels indicated by the clients are reached.

This is a different strategy from that of mutual funds, where the investments in the market are made by the investment managers. The clients essentially do not have any say on investment matters.

Despite the frequent churning of the portfolios, under these managers, the I-T department feels that since these are transactions carried out on behalf of clients, who are investors and not traders, only short-term capital gains should apply.
 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2017 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Software Work Flow Workflow Software Software Automation Workflow automation Software Design Workflow Design Business Work Flow Workflow automation tools

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