S.R.O. 1149(I)/2011, dated 27th December, 2011

SROS: S.R.O. 1149(I)/2011, dated 27th December, 2011 AMENDMENT IN THE SECOND SCHEDULE T0 INCOME TAX RULES, 2002--IN RULE 13E, ISF, 13H & SUBSTITUTION OF RULE 13J Notification No. S.R.O. 1149(I)/2011, dated 27th December, 2011:- In exercise of the powers conferred by sub-section(1) of section 237 of the Income Tax Ordinance, 2001(XLIX of 2001), the Federal Board of Revenue is pleased to direct that the following further amendments shall be made in the Income Tax Rules, 2002, the same having been previously published vide Notification No. S.R.O. 715(I)/2011, dated the 20th July, 2011, as required by sub-section(3) of the said section, namely:-- In the aforesaid Rules,-- (i) in rule 13E, after sub-rule(5), the following new sub-rules shall be added, namely:-- (6) Profit made on sale of borrowed shares shall be treated as capital gain when such shares are acquired for their return to Authorized Intermediary. Period intervening between acquisition and disposal of such borrowed shares shall determine the holding period in which the capital gain or loss falls. Specific Identification Method shall be used to determine the acquisition cost and consideration for disposal of such securities. The difference between cost of acquisition and consideration received against disposal(net off all borrowing costs) of such shares shall be treated as capital gain or loss. This rule shall be applicable to the securities borrowed in accordance with the Securities Lending and Borrowing Scheme approved by Securities and Exchange Commission of Pakistan. (7) Profit made on disposal of shares acquired under Margin Finance Scheme, Margin Trading Scheme or other Financing or Leverage schemes approved by…