Tax on Capital Gains on disposal of Securities

Tax on Capital Gains on disposal of Securities

Rate of Tax on Capital Gains on disposal of Securities

S# Description Rate
1 Where the holding period does not exceed one year 15%
2 Where the holding period exceeds one year but does not exceed two years 12.5%
3 Where the holding period exceeds two years but does not exceed three years 10%
4 Where the holding period exceeds three years but does not exceed four years 7.5%
5 Where the holding period exceeds four years but does not exceed five years 5%
6 Where the holding period exceeds five years but does not exceed six years 2.5%
7 Where the holding period exceeds six years 0%
8 Future Commodity contracts entered into by members of Pakistan Mercantile Exchange 5%
Provided further that a mutual fund or a collective investment scheme or a REIT scheme shall deduct Capital Gains Tax at the rates as specified below, on redemption of securities as prescribed namely:—
Category Rate
Individual and association of persons 10% for stock funds, 10% for other funds
Company 10% for stock funds,25% for other funds

Provided further that in case of a stock fund if dividend receipts of the fund are less than capital gains, the rate of tax deduction shall be 12.5%: Provided further that no capital gains tax shall be deducted, ifthe holding period

of the security is more than six years.