Income from Capital Gain (Section 37)
(1) Capital Gain On Sale of Jewelry
(a) Capital Gain on Sale of Jewelry (Fully Taxable)
(b) Profit on Sale of Inherited Jewelry (if dispose of within 12months Fully Taxable)
(c) Profit on Sale of Inherited Jewelry (if dispose of after 12months Exempt up to 25% of Gain remaining Gain Will Taxable)
(2) Capital Gain on Sale of Private Company Shares
(a) Gain on Sale of Shares (if dispose of within 12months Fully Taxable)
(b) Gain on Sale of Shares (if dispose of after 12months Exempt 25% of Gain remaining Gain will be Taxable)
Note: Loss will first be deducted from gain in Both Above Cases.
(3) Capital Gain on Sale of Public Company Shares/Securities/Modarba Certificate
(a) If Holding Period is Less than 1 year
15% of Gain will be Taxable
(b) If Holding Period is more than 1 but Less than 2 years
12.5% of Gain will be Taxable
(c) If Holding Period is more than 2 but Less than 4 years
7.5% of Gain will be Taxable
(d) If Holding Period is More than 4 year
Fully Exempt
Note:
Taxable under Separate Block of Income.
(4) Capital Gain on Disposal of Shares of Company in Export Processing Zone in Exempt
Fully Exempt
(5) Capital Gain on Sale of Inherited House/Immovable Property
(1) Property acquired before 01-07-2016
(a) In case holding period is more than 3 years ( Fully Exempt)
(b) In case holding period is up to 3 years (5% of Gain will be Taxable)
(2) Property acquired after 01-07-2016
(a) In case holding period is more than 3 years ( Fully Exempt)
(b) More than 2 years but less than 3 years (5% of Gain will be Taxable)
(c) More than 1 year but less than 2 years (7.5% of Gain will be Taxable)
(d) Less than or up to 1 year (10% of Gain will be Taxable)
Note:
Taxable under Separate Block of Income.
Notes:
(a) Loss on Sale of Security can only be adjusted against security Gain.
(Separate Block of items as Taxable)
(b) Capital Loss can only be adjusted against Capital Gain, if there is no Capital Gain than loss cannot be adjusted.
(c) No loss shall be recognized on Sale of Jewelry, Painting and Antiques.
(d) Inherited Amount receives through Court Order more than 5 years will Exempt Completely.
