ISLAMABAD: The annual collection of capital gain tax (CGT) from the disposal of securities fell by 26 per cent during fiscal year 2020/2021, according to official data made available to PkRevenue.com
The official data revealed that the Federal Board of Revenue (FBR) collected Rs1.925 billion as CGT during the fiscal year 2020/2021 as compared with Rs2.595 billion in the preceding year.
The FBR collects adjustable advance income tax under Section 147 (5B) of Income Tax Ordinance, 2001 from sale of securities.
The rate of advance income tax on capital gain is:
01. Where the holding period of a security is less than six months: the tax rate shall be two per cent of the capital gains derived during the quarter.
02. Where the holding period of a security is more than six months but less than twelve months: the tax rate shall be 1.5 per cent of the capital gains derived during the quarter.
Provided that such advance tax shall be payable to the Commissioner within a period of twenty-one days after the close of each quarter:
Provided further that the provisions of this sub-section shall not be applicable to individual investors, according to the Income Tax Ordinance, 2001.