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Frequent-Churn PMS Strategies Confront Tax Dilemma as Budget Hikes Capital Gains Tax

14 August 2024

The Union Budget 2024-25’s increase in capital gains tax rates introduces significant challenges for Portfolio Management Services (PMS). With the short-term capital gains tax now set at 20%, PMS strategies characterised by high turnover will face heightened tax burdens. Rohan Samant, Principal Officer and Chief Investment Officer at Multi-Act, was quoted by Mint alongside other industry leaders, emphasising that PMS strategies must generate higher returns to stay competitive with mutual funds. The new tax framework is expected to intensify competition and could potentially lead to consolidation within the PMS industry.

Read full article here: https://www.livemint.com/money/personal-finance/capital-gains-tax-stcg-ltcg-union-budget-pms-strategies-portfolio-managers-mutual-funds-investing-money-11722413581980.html

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