Portfolio mgmt services tax treatment (Income Tax)

This query is : Resolved

Arvind

( Author )
16 July 2012

Hello!
Previously I had asked question on setting off STCG. This is a related follow up.

I have invested my funds in PMS service offered by Motilal Oswal. As per their audited statement for the FY, they have sold some of the shares from my portfolio and therefore I have suffered the loss on both LT and ST front.

I would like to confirm 2 things:

1. In normal case if there was LTCG (not loss) and STCG (not loss) these would be treated just like LTCG (tax free) and STCG (15%). i.e. Is PMS equity transaction treated just like my own personal equity transaction?

2. In my case since there is ST loss on PMS side, I can set these off from other STCG (non-111A)?

Thank you very much in advance!

Arvind.

Amol S. Joglekar.

( Expert )
16 July 2012

This basically depends upon the agreement between you and Motilal Oswal as to what sort of PMS you are into? If every thing is in your name, your questions/answers are absolutely correct. Answers to 1 as well as 2 are YES.