FBR issues SRO for computing CGT

Every investor, other than individual investors of stock exchanges, shall e-file statement of advance tax on capital gain within seven days after the end of each quarter.
According to SRO 112(1)/2011, issued here on Saturday by the Federal Board of Revenue (FBR) on computation of capital gain on disposal of securities, every investor shall calculate tax on capital gain arising on securities held for a period up to six months, and above six months to one year, after the end of each tax year at the prescribed rates.
Every investor, other than individual investor, shall e-file statement of advance tax on capital gain on the prescribed format within seven days after the end of each quarter with the tax authority having jurisdiction in the case.
The capital gains tax (CGT) rules said that the liability to pay the due tax on capital gain shall lie on the investor who held the securities during the period for which tax on capital gain is to be paid and, in case of any 'benami' accounts, on the investor who de facto owns the securities carried in such accounts.
Every investor shall maintain accounts and records separately for each of his brokerage accounts regarding his securities' business which should sufficiently enable verification of the discharge of his obligations under these rules. Without prejudice to the generality of the foregoing provision, every investor shall maintain in particular the following accounts and records: Fortnightly ledger statements of the investor's brokerage account or each brokerage account if there are more than one account whether in the investor's own name or any benami accounts, generated by his broker; fortnightly CDC statements of the investor's CDC sub account or each CDC sub-account corresponding to each brokerage account, if there are more than one brokerage account whether held in the investor's own name or any benami accounts; record of security holdings and their value carried in the investor's brokerage account as on 30th June of each year; record of cash carried in the investor's brokerage account as on 30th June of each year; record of funds deposited in the investor's brokerage account; and record of funds withdrawn from the investor's brokerage account.
About the holding period, the rules said that the securities held for a period up to a maximum of one eighty-two days and for a period up to a maximum of 365 days shall be taken as held for six months and one year respectively. In case of short positions, holding period shall be the period intervening between the date when a security is sold short and the date when the security is purchased to cover the short position.
In case of futures contracts, holding period shall be the period intervening between the date of entry into a futures contract and the date of exit from such contract.
The rules said that the capital gain or loss arising on the disposal of any security shall be computed on the basis of First In First Out (FIFO) inventory accounting method. Capital loss arising on disposal of securities in any tax year shall be set off against capital gain arising from the disposal of securities during that tax year to determine the taxable capital gain arising from the disposal of securities. (3) Capital loss arising on disposal of securities in any tax year shall not be carried to a subsequent tax year.