Income Tax Rules, 2002

CHAPTER-II

DETERMINATION OF INCOME HEADS OF INCOME PART-III: COMPUTATION OF CAPITAL GAIN ON DISPOSAL OF SECURITIES UNDER SECTION 37A OF THE INCOME TAX ORDINANCE, 2001

From: 2023-11-01 - To: 0000-00-00 13L. Definitions.- (1) In this Part, unless the context otherwise requires,- (a) borrowed security means a security which an investor borrows under any security lending and borrowing scheme approved by the Securities and Exchange Commission of Pakistan, with an aim to returning the security to its lender, at any later date; (b) capital gain means the difference between consideration from disposal of a security and the price paid or would have been paid for acquisition of such security when former exceeds the later, provided that capital gain, in case of a borrowed security, means the difference between consideration received from short selling of the borrowed security and the price paid or payable to purchase it for its return to the lender of such security; (c) capital loss means the difference between cost of acquisition of a security and the consideration from disposal of that security when the former exceeds the later; (d) cost of acquisition of any security means the market price of the security which the investor pays or would have paid to purchase such security, provided that cost of acquisition,- 1[(i) in case of a right share, means the discounted price at which the right shares are issued to a shareholders by the issuer including the cost of acquisition of letter of rights;] (ii) in case of a security acquired through bequest or inheritance means the market price of security at which the deceased person making bequest or leaving the inheritance, as the case may be, paid or would have paid to purchase such security; 2[ 3[“(iii)”] in case of bonus shares: (i) shall be ex-bonus price if tax has already been paid under section 236M; (ii) the value determined under section 236N, if tax is paid under section 236N; and 4[(iii) shall be zero, in any other case.] (iv) in case of initial public offering, the actual price paid to the issuer shall be treated as the cost of acquisition of such securities.] (e) consideration from disposal of any security means the market price of a security which the investor receives or would have received on the sale of that security; (f) derivative products means a financial product which…