The Federal Board of Revenue (FBR) may extend date for filing quarterly returns of capital gain tax (CGT) for the first and second quarter of 2010-11. A senior FBR official told Business Recorder here on Monday that the board had asked the investors of stock exchanges to provide relevant data of their transactions as on June 30, 2010.
There was delay in issuance of the Rules on Computation of Capital Gain Tax in the past. Later the rules were notified through an SRO.112 (1)/2011 in February 2011. It is the responsibility of the concerned investors to file quarterly statements of capital gains for first and second quarters of current fiscal. If there is any problem in filing of quarterly statements, the FBR would facilitate the investors.
Under the SRO.112 (1)/2011, every investor shall calculate tax on capital gain arising on securities held for a period of six months, and 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 forms within seven days after the end of each quarter. The liability to pay the due tax on capital gain rests with 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, notification added.
It is worth mentioning that the Board had shown concern over the non-filing of quarterly returns of capital gain tax (CGT) by some companies, and requested the Karachi Stock Exchange (KSE) to extend assistance to them in this respect. During a meeting between FBR officials and the taxation committee of the KSE Board held on February 21, 2011 the FBR gave its assurance that the concerns of KSE about SRO112 (1)2011 pertaining to rules on computation of CGT would be given due consideration and amendments accordingly would be made and issued at the earliest.