The Federal Board of Revenue (FBR) has sent, for vetting to Law and Justice Division, the draft of the ''Capital Gains Tax (CGT) Rules 2010'', to be applicable on stock exchange investors. Sources told Business Recorder here on Monday that the FBR would notify the CGT rules after clearance from the Law and Justice Division.
The FBR will amend the Income Tax Rules 2002 for issuance of procedure on computation of capital gains tax on stock market. Once the new amendment is incorporated in the CGT Rules 2010, the rules would be applicable on the investors of stock exchanges. It is expected that the new rules would be immediately issued after clearance from the Law Division.
Under the CGT Rules 2010, the Board would not allow adjustment of losses on disposal of securities at the stock exchanges in cases of "Wash sales", "Cross trade" and "Tax Swap Sale". No adjustment of loss arising in cases of "Wash sales", "Cross trade" and "Tax Swap Sale" shall be admissible. According to the draft of rules, loss suffered on disposal of securities during the period of a tax year shall be set off against capital gains from disposal of securities during such period irrespective of the period of holding of such securities in such tax year.
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