Income Tax Ordinance, 2001

CHAPTER-III

TAX ON TAXABLE INCOME PART V HEAD OF INCOME: CAPITAL GAINS

From: 2023-07-01 - To: 0000-00-00 1[37A. Capital gains on sale of securities.- (1) The capital gain arising on or after the first day of July 2010, from disposal of securities 2[***] 3[,other than a gain that is exempt from tax under this Ordinance], shall be chargeable to tax at the rates specified in Division VII of the First Schedule: 4[***] Provided 5[***] that this section shall not apply to a banking company and an insurance company6[; 7[Provided further that this section shall not apply to the disposal of shares - (i) of a listed company made otherwise than through registered stock exchange and which are not settled through NCCPL; (ii) through initial public offer during listing process except where the detail of such disposal is furnished to NCCPL for computation of capital gains and tax thereon under this section, and the provisions of section 37 shall apply on such disposal of shares of a listed company or disposal of shares through initial public offer, accordingly.] 8[(1A) The gain arising on the disposal of a security by a person shall be computed in accordance with the following formula, namely:- A - B Where- (i) ‘A’ is the consideration received by the person on disposal of the security; and (ii) ‘B’ is the cost of acquisition of the security.] (2) The holding period of a security, for the purposes of this section, shall be reckoned from the date of acquisition (whether before, on or after the thirtieth day of June, 2010) to the date of disposal of such security falling after the thirtieth day of June, 2010. (3) For the purposes of this section “security” means share of a public company, voucher of Pakistan Telecommunication Corporation, Modaraba Certificate, an instrument of redeemable capital 9[, debt securities] 10[, unit of exchange traded fund] and derivative products. 11[(3A) For the purpose of this section, “debt securities” means- (a) Corporate Debt Securities such as Term Finance Certificates (TFCs), Sukuk Certificates (Sharia Compliant Bonds), Registered Bonds, Commercial Papers, Participation Term Certificates (PTCs) and all kinds of debt instruments issued by any Pakistani or foreign company or corporation registered in Pakistan; and…