Case Law Details
In this case, assessee gave her funds to the PMS Manager as in investment and there is no involvement of assessee in day to day transaction of the funds. The result of profit and loss in the end of the year from PMS Account is a capital loss. In earlier year assessee was dealing in shares from her own firm. The same activity was also carried out during the year. Along with some share transactions were considered as part of the business activities and loss of PMS Account was also considered as part of the business activity. Whereas looking the facts and circumstances of the case such income cannot be a business income where assessee has least role to play in day-to-day transaction of funds.
Full Text of the ITAT Order is as follows:-
This is an appeal by the assessee directed against the order of the Commissioner of Income Tax(Appeals)-XVI, Ahmedabad, dated 11/03/2013 for the Assessment Year (AY) 2009-10.
2. Assessee has taken following Grounds of appeals:
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Author Bio
Hello Sir,
How we should record the unrealised gain and is there any taxability on this.
Also in case of realised gains, should we impact our books through gains and expenses
Mr. Sandeep – In the case of PMS, the short and long term capital gains statement is given. However if each entry has to be made in the ITR-2, it is a huge process as there are more than 300 to 400 individual transactions. How does one manage this? Your response will be deeply appreciated. Regards.
Mr x gave Rs25L towards PMS scheme (portfolio management services) to Indianivesh in FY 17-18. India Nivesh didn’t give any return for FY 17-18 and 18-19. In March 2020 due to corona informed Mr x that they are terminating the PMS and said the valuation of his portfolio scheme is 22 lakhs. In April 20 they transferred the portfolio held by them to X demat account. The market value of the shares is only 11 lakhs. How these transactions get reflected in Income tax returns.
Can we set off the expenditure on service charges/ management fee of PMS against any other income like interest on deposits /debtl funds as we receive only dividend income and capital gain/loss from PMS and no chance to set off
Hi Sandeep, What would be the tax rate for short term capital loss on PMS account for the year ended on March 31, 2018.
Hi Sandeep,
If I take PMS service for a lock in period of 3 years. When should I pay tax on income from PMS. Whether at the time of Exit or at every year end.