Law: Income Tax Ordinance, 2001

Section: 37A,37A(2),100B,FirstSched.,PartI,Div.VI I,EighthSched

(a) Income Tax Ordinance (XLIX of 2001)---- ----Ss. 37-A, 100-B, First Sched., Part I, Div. VII & Eighth Sched.---Capital gain on disposal of securities---'Holding period', absence of---Effect---Term 'security', as used in S. 37-A of Income Tax Ordinance, 2001, meant shares of a listed company (as defined under S. 2 (47) of the Ordinance)---Company in question was not a listed company on any Stock Exchange on the date on which the petitioner had acquired the shares of the company---For the charge in terms of S. 37-A of Income Tax Ordinance to be complete and for the tax levied in terms thereof to be payable, the instrument in question (shares of the company) must have been a 'security' for the entire 'holding period', which meant that the shares of the company ought to have been listed on a Stock Exchange on the date on which the petitioner has acquired the same and the date on which he had disposed of the same---In absence of 'holding period', there could be no levy of tax in terms of S. 37-A of the Ordinance---Petitioner was, therefore, not liable to the payment of any tax in terms of S. 37-A of the Ordinance on disposal of the shares---High Court, setting aside the deduction and collection of the amount of tax from the petitioner, directed the department to refund the same---Constitutional petition was allowed in circumstances. (b) Income Tax Ordinance (XLIX of 2001)---- ----S. 37A----Capital gain on disposal of securities---Conditions---'Securities'---Definition and scope---'Holding period', absence of---Effect---Section 37-A(2) of Income Tax Ordinance, 2001 determines the 'holding period', which in turn determines the rate to be applied to the capital gain made on the disposal of a security'---Said 'holding period' is with reference to a 'security' and not otherwise---Term 'security' has been given a specific meaning for purposes of S. 37-A of Income Tax Ordinance, 2001; therefore, the term can only have, and be given, its defined meaning---Relevant instrument in question must be a 'security' both on the date on which the same are acquired and on the date the same are disposed of, and both of said conditions must be met and are applicable for there to…

Deprecated: trim(): Passing null to parameter #1 ($string) of type string is deprecated in /home/digixyei/sldsystempk.com/view/master-layout/view_case.php on line 492