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" LETTER FROM   LETTER FROM AMIR ALAM KHAN & CO.   CHARTERED ACCOUNTANTS, RAWALPINDI   TO   CHAIRMAN,   FEDERAL BOARD OF REVENUE   (Re: Clarification of the anomalies regarding taxability of capital gains on disposal of securities under section 37A of the Income Tax Ordinance, 2001)   No.Misc/003 July 27, 2010   The Chairman, Federal Board of Revenue, Government of Pakistan FBR House, Constitution Avenue, Islamabad   SUBJECT: CLARIFICATION OF THE ANOMALIES REGARDING TAXABILITY OF CAPITAL GAINS ON DISPOSAL OF SECURITIES UNDER SECTION 37A OF THE INCOME TAX ORDINANCE, 2001   Dear Sir,   Capital Gains arising on the disposal of "Securities" (shares of a public company, vouchers of Pakistan Telecommunication Corporation, Modaraba Certificates or instruments' of redeemable capital and derivative products) have been brought in the ambit of chargeable capital gains under the Income Tax Ordinance, 2001 and for this purpose amendments have been made in section 37, a new section 37A has been inserted, a new Division VII in Part-I of the 1st Schedule has been inserted and clause (110) of Part-I of 2nd Schedule has been omitted through Finance Act, 2010.   A cumulative reading of the aforesaid amendment, insertion and omission needs clarification on the following anomalies:   (1) Taxability of capital gains arising on disposal of securities held for a period of exactly twelve (12) months and six (6) months:   (a) Subsection (1) of section 37A reads as under:   "The capital gain arising on or after the first day of July, 2010, from the disposal of securities held for a period of less than a year, shall be chargeable to tax at the rates specified in Division VII of Part-I of the First…