KARACHI: Federal Board of Revenue (FBR) has collected Rs1.8 billion as advance tax on capital gains from sale of securities during first nine months of the current fiscal year.
According to statistics made available on Thursday, the Large Taxpayers Office (LTO) Karachi collected Rs1.8 billion during July – March 2020/2021 as compared with Rs1.63 billion in the corresponding period of the last fiscal year, showing an increase of 10 percent.
The FBR collects adjustable advance tax on capital gain from sale of securities under Section 147(5B) of the Income Tax Ordinance, 2001.
The rate of advance tax is two percent of the capital gains derived during the quarter, where holding period of a security is less than six months.
The rate of advance tax is 1.5 percent of the capital gains derived during the quarter, where holding period of a security is more than six months but less than twelve months.
The collection of advance tax on capital gains from sale of securities fell sharply by 96 percent to Rs11.24 million when compared with Rs269 million in the same month of the last year.