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Portfolio Management Fees

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This discussion clarifies that portfolio management fees should not be added to the cost of shares or mutual funds. Instead, they are treated as an expense. This is based on a ruling by the ITAT Mumbai in the case of Mateen Pyarali Dholkia Vs DCIT.

Nikhil Prajapati

Nikhil Prajapati (Querist)
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02 January 2020 Is portfolio management fess expense or should i added it to cost of shares and Mutual Funds?
If i should add it to cost of shares and mutual funds, then on what basis the calculation to be made to charge it to each share or mutual fund?

Zeal Bangdiwala

Zeal Bangdiwala (Expert)
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02 January 2020 Portfolio Management Fees cannot be treated as part of cost of shares or mutual funds. As per the decision of ITAT Mumbai in case of Mateen Pyarali Dholkia Vs DCIT, ITA No. 6950/MUM/2016.

Nikhil Prajapati

Nikhil Prajapati (Querist)
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02 January 2020 Then should i expense it out?

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