Why does my “net capital in” show small redemptions even though I haven’t withdrawn money?

This is a common point of confusion. Your actual invested amount is the money you transferred into the PMS (e.g., ₹50 lakhs). However, the PMS reporting system may show a slightly lower net capital in (e.g., ₹49.5 lakhs) because certain flows are treated as “redemptions” for accounting purposes—even if you have not requested any withdrawal.

The most common reason is TDS deducted on dividends. When a company pays a dividend, it typically deducts TDS before the dividend reaches your PMS account. From an accounting perspective, the portfolio was entitled to the full dividend, but only receives the amount after TDS—so the deducted TDS is shown as an outflow (often reflected as a “redemption”) to reconcile where that amount went.

Importantly, this is not a withdrawal you made—it is effectively tax paid on your behalf. That deducted amount shows up as a tax credit in your tax records (Form 26AS / AIS), and can be adjusted against your final tax liability when you file your return. So the “redemption” you see is typically just a reflection of dividend-related TDS accounting, not an actual redemption initiated by you.