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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 37. Capital gains.- (1) Subject to this Ordinance, a gain arising on the disposal of a capital asset by a person in a tax year, other than a gain that is exempt from tax under this Ordinance, shall be chargeable to tax in that year under the head “Capital Gains”. 1[(1A) Notwithstanding anything contained in sub-section (1), gain arising on disposal of immovable property situated in Pakistan, to a person in a tax year shall be chargeable to tax under the head capital gains at the rates specified in Division VIII of Part I of the First Schedule.] (2) Subject to 2[sub-section] (4), the gain arising on the disposal of a capital asset by a person shall be computed in accordance with the following formula, namely:- A - B Where- A is the consideration received by the person on disposal of the asset; and B is the cost of the asset. 3[***] 4[***] 5[***] (4) For the purposes of determining component B of the formula in sub-section (2), no amount shall be included in the cost of a capital asset for any expenditure incurred by a person- that is or may be deducted under another provision of this Chapter; or that is referred to in section 21 6[***] (5) In this section, “capital asset” means property of any kind held by a person, whether or not connected with a business, but does not include - 7[(a) any stock-in-trade 8[***], consumable stores or raw materials held for the purpose of business;] (b) any property with respect to which the person is entitled to a depreciation deduction under section 22 or amortization deduction under section 24; 9[or] 10[***] (d) any movable property 11[excluding capital assets specified in sub-section (5) of section 38] held for personal use by the person or any member of the person’s family dependent on the person12[.] 13[***] 14[(6) The person acquiring a capital asset, being shares of a company, shall deduct advance adjustable tax from the gross amount paid as consideration for the shares at the rate often percent of the fair market value of the shares which shall be paid to the Commissioner by way of credit to the Federal Government, within fifteen days of the payment. (7) Notwithstanding the provisions of…
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