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Tag: Capital Gain Tax

  • Capital gain tax to be collected on July 30: NCCPL

    Capital gain tax to be collected on July 30: NCCPL

    KARACHI: National Clearing Company of Pakistan Limited (NCCPL) on Wednesday announced to collect capital gain tax for month of June 2020 on July 30, 2020.

    The NCCPL in a statement said that the aggregate amount of CGT arising on disposal of shares at Pakistan Stock Exchange for the period June 01, 2020 to June 30, 2020, would be collected on Thursday July 30, 2020 through respective settling banks of the clearing members, along with refund or adjustments on the basis of amount collected up to previous month.

    All Clearing Members are advised to ensure requisite amount in their respective settling bank’s account.

    Necessary details and reports for the said period have already been made available in the CGT System, the NCCPL said.

    Further, the aggregate amount of CGT arising on trading of future commodity contracts at Pakistan Mercantile Exchange for the period June 01, 2020 to June 30, 2020, would also be collected from the Pakistan Mercantile Exchange on Thursday July 30, 2020. Necessary details and reports for the said period have already been made available.

    Moreover, the aggregate amount of CGT arising on redemption of units of open end mutual funds have also been finalized for the period June 01, 2020 to June 30, 2020. Necessary details and reports have already been made available in the CGT System.

    The NCCPL further said that consequent to amendments introduced in section 37 A pertaining to adjustment of carry forward of losses for three years, net capital gains as on June 30, 2020 has been adjusted with net capital loss as on June 30, 2019 and accordingly any CGT collected thereon if any, shall be refunded/adjusted.

  • FBR issues formula for computing capital gain tax on immovable property sale

    FBR issues formula for computing capital gain tax on immovable property sale

    ISLAMABAD: Federal Board of Revenue (FBR) has issued formula for computation of capital gain tax on disposal of immovable property as amended through Finance Act, 2020.

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  • CGT on immovable properties reduced by 50 percent

    CGT on immovable properties reduced by 50 percent

    ISLAMABAD: The capital gain tax on (CGT) disposal of immovable properties has been reduced by 50 percent in order to promote investment in construction industry.

    According to Deloitte Yousuf Adil, Chartered Accountants, the Finance Bill 2020 proposed reduction in tax rates by 50 percent on capital gains arising on disposal of immovable property.

    This is in line with the Government’s vision to promote construction industry and to provide stimulus for the growth in economy as construction sector provide employment to a number of sub-sectors.

    S. No.Amount of gainRate of tax
      ExistingProposed
    1.Where the gain does not exceed Rs.5 million5%2.5%
    2.Where the gain exceeds Rs.5 million but does not exceed Rs.10 million10%5%
    3.Where the gain exceeds Rs.10 million but does not exceed Rs.15 million15%7.5%
    4.Where the gain exceeds Rs.15 million20%10%

    A person responsible for registering, recording, or attesting transfer of immovable property is required to collect advance tax from seller of such property.

    Such advance tax is not collected where the immovable property is held for a period exceeding 5 years.

    The Bill proposes to reduce this time limit of 5 years to 4 years.

  • NCCPL announces CGT collection on May 29

    NCCPL announces CGT collection on May 29

    The National Clearing Company of Pakistan Limited (NCCPL) has declared that Capital Gain Tax (CGT) for the month of April 2020 will be collected on May 29, 2020.

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  • NCCPL says CGT December payment due on January 29

    NCCPL says CGT December payment due on January 29

    KARACHI: National Clearing Company of Pakistan Limited (NCCPL) on Tuesday announced date for payment of capital gain tax (CGT) for the month of December 2019.

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  • Up to 75% capital gain tax exempt on immovable property sale

    Up to 75% capital gain tax exempt on immovable property sale

    KARACHI: The government has exempted capital gain tax up to 75 percent in case an immovable property sold by government employees of army personnel after completion of three years.

    According to BDO Audit Consultancy Firm, Clause (9A) of Part III of Second Schedule provides a 50 percent exemption on capital gain derived on first sale of immovable property acquired or allotted to ex-servicemen and serving personnel of Armed forces or ex-employees or serving personnel of Federal and Provincial Governments, being original allottees of immovable property.

    The Tax Laws (Second Amendment) Ordinance, 2019 has further exempted capital gains up to 75 percent in case the property is sold after completion of three years from date of acquisition.

  • NCCPL to collect CGT for Oct-Nov on Jan 03

    NCCPL to collect CGT for Oct-Nov on Jan 03

    KARACHI: National Clearing Company of Pakistan Limited (NCCPL) on Monday announced to collection capital gain tax (CGT) for the months of October – November 2019 on January 03, 2020.

    In a communication sent to Pakistan Stock Exchange (PSX), the NCCPL said that the aggregate amount of CGT arising on disposal of shares at PSX for the period October 01, 2019 to November 30, 2019, would be collected on Friday January 3, 2020 through respective settling banks of the Clearing Members.

    The NCCPL advised all clearing members to ensure requisite amount in their respective settling bank’s account. Necessary details and reports for the said period have already been made available in the CGT System.

    Further, the aggregate amount of CGT arising on trading of future commodity contracts at Pakistan Mercantile Exchange for the period October 01, 2019 to November 30, 2019, would also be collected from the Pakistan Mercantile Exchange on Friday January 3, 2020.

    Necessary details and reports for the said period have already been made available.

    Moreover, the aggregate amount of CGT arising on redemption of units of open end mutual funds have also been finalized for the period July 01, 2019 to November 30, 2019. Necessary details and reports have already been made available in the CGT System.

    Clearing Members and Pakistan Mercantile Exchange are hereby requested to verify the investor wise details of capital gain or loss and tax thereon, if any, through reports/downloads.

    The NCCPL warned that in case of none or partial collection of CGT, necessary action would be taken in accordance with the Rules and NCCPL Regulations.

  • NCCPL delays CGT collection due to computation process

    NCCPL delays CGT collection due to computation process

    KARACHI: National Clearing Company of Pakistan Limited (NCCPL) on Wednesday said that it has delayed the collection of capital gain tax (CGT) for the month of October 2019 due to computation procedures.

    In a notice to Pakistan Stock Exchange (PSX), the NCCPL said that the CGT was to be collected on November 19, 2019 for the month of October 2019.

    However, the NCCPL said that it was in process of finalizing the CGT computation, therefore, revised CGT collection date would be notified to the market participants in due course.

    The NCCPL collects CGT on behalf of Federal Board of Revenue (FBR) on sale and purchase of shares.

    The NCCPL also collected the CGT of previous months of this fiscal year after the scheduled timelines for CGT collection. The delay in collection of CGT was due computation process after the measures announced in the budget 2019/2020.

  • Tax rules for computation of profits, gains of insurance business

    Tax rules for computation of profits, gains of insurance business

    KARACHI: Federal Board of Revenue (FBR) has issued updated rules for the computation of profits and gains of the insurance business under Income Tax Ordinance, 2001.

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  • NCCPL to collect capital gain tax on October 09

    NCCPL to collect capital gain tax on October 09

    KARACHI: National Clearing Company of Pakistan Limited (NCCPL) has announced that it will collect Capital Gain Tax (CGT) on disposal of shares on October 09, 2019 for the period July and August.

    Informing the Pakistan Stock Exchange (PSX), the NCCPL said that the aggregate amount of CGT arising on disposal of shares at PSX for the period July01, 2019 to August31, 2019, would be collected on Wednesday October 9, 2019 through respective settling banks of the Clearing Members.

    All Clearing Members are hereby requested to ensure requisite amount in the irrespective settling bank’s account.

    Necessary details and reports for the said period have already been made available in the CGT System.

    Clearing Members have been asked to verify the investor wise details of capital gain or loss and tax thereon, if any, through reports/downloads.
    In case of none or partial collection of CGT, necessary action would be taken in accordance with the Rules and NCCPL Regulations, the NCCPL said.

    NCCPL collects advance tax from the members of Stock Exchange registered in Pakistan, margin financiers, trading financiers and lenders],in respect of margin financing in share business or providing of any margin financing, margin trading or securities lending under Securities (Leveraged Markets and Pledging) Rules, 2011 in share business] at the rate specified in Division IIB of Part IV of First Schedule.