3. CAPITAL ASSETCAPITAL ASSET
• Any stock in trade
• Any depreciable asset
• Any intangible asset
• Any moveable property held for personal use of the
person
• Jewelry
• An antique
4. EXAMPLES OF CAPITALEXAMPLES OF CAPITAL
ASSETSASSETS
• Modaraba Certificates
• Participation term certificate
• Musharika certificate
• Shares of companies
• Leasehold rights
• Partner share in AOP
• Immoveable property
5. COMPUTATION OF CAPITALCOMPUTATION OF CAPITAL
GAINGAIN
Consideration received on disposal of asset xxx
Less: Cost of the asset xxx
Gain/(Loss) on disposal of asset xxx
6. FAIR MARKET VALUE ASFAIR MARKET VALUE AS
COST OF CAPITAL ASSETCOST OF CAPITAL ASSET
• Fair market value treated as its cost if capital asset
becomes the property:
Gift
Will
Distribution of asset on dissolution of an AOP
Bequest
Succession
Devolution
8. CAPITAL GAIN ONCAPITAL GAIN ON
IMMOVEABLE PROPERTYIMMOVEABLE PROPERTY
S.No Holding Period Tax Rate
1 Upto one year 10%
2 More than 1 year
but less than 2
year
5%
3 More than 2
years
None taxable
9. CAPITAL GAIN ON DISPOSALCAPITAL GAIN ON DISPOSAL
OF SECURITIESOF SECURITIES
Security means following capital assets:
Share of a public company
Voucher of Pakistan Telecommunication Corporation
Modarba certificate
PTCs
TFCs
Derivative products
10. TAXATION OF GAIN ONTAXATION OF GAIN ON
SECURITIESSECURITIES
S.No Holding Period Tax rate
1 Less than 6
months
10%
2 More than 6
month but less
than 12 months
8%
3 12 month or more 0%
12. TREATMENT OF CAPITALTREATMENT OF CAPITAL
LOSSESLOSSES
• Any capital loss is deducted from capital gain
• If gain is not chargeable to tax so loss is also not
deductible
Any loss on disposal of the following asset is not
recognized
A painting
Jewelry
Coin
13. BONUS SHARESBONUS SHARES
• Those shares which are issued to share holders
• It is excluded from definition of income
• But when the shares disposed off so tax is applied on
the disposal of the share