NCCPL to collect capital gains tax on July 30

KARACHI: The National Clearing Company of Pakistan Limited (NCCPL) on Monday said it will collect capital gains tax for the period July 1, 2020 to June 30, 2021.

The collection will be made through respective settling banks of the clearing members, along with the refund or adjustments on the basis of amount collected up to the previous month.

The NCCPL advised all the clearing members to ensure the requisite amount in their respective settling bank’s account.

It also said the aggregate amount of the capital gains tax (CGT) arising on the trading of futures commodity contracts at the Pakistan Mercantile Exchange and redemption of units of open-end mutual funds have also been finalised for the period June 1, 2020 to June 30, 2021.

Necessary details/reports of the PSX, AMCs and PMEX data for the period have been made available in the capital gains tax system.

The net capital gain of the current tax year has been adjusted against unadjusted carried forward capital loss for the tax years 2019 and 2020 in all the markets, i.e., PSX, MUFAP and PMEX on a first-in-first-out basis.

However, the adjustment of the prior year’s capital losses is subject to the availability of the taxpayer’s name in the Active Taxpayers List provided by the Federal Board of Revenue (FBR) to NCCPL for the purpose of allowing such adjustments.

The National Clearing Company of Pakistan Limited also advised the clearing members, Pakistan Mercantile Exchange and mutual funds to verify the investor-wise details of the capital gain or loss and tax; thereon, if any, through reports/downloads.

In case of none or partial collection of the capital gains tax, a necessary action would be taken in accordance with the NCCPL rules and regulations, it added.

The NCCPL collects capital gains tax on behalf of the Federal Board of Revenue.

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