Since under a PMS, investments are held directly in the investor’s name (and not via a trust like in a MF or AIF), the tax liability for the PMS investor is the same as the investor directly buying or selling shares/securities in his own name.
Income from shares purchased through PMS is taxable as Capital Gains- could be Long term or Short term in nature.
– Gains from stocks that are held for more than a year get treated as long term and are taxed @ 10% plus surcharges.
– For the holdings that traded within 1 year, treatment is short term, and are taxed @ 15% plus surcharges.
– For the income earned in form of dividends credited in the financial year, dividend distribution tax is already deducted at the source and in the hands of investor, these dividends tax-free. But, if total income from such dividends earned in a financial year is more than 10 lacs across all investments, then additional dividend income tax is also applicable.