CAF-2 · Chapter 9 · Question 6 of 15
A resident active taxpayer purchased 10,000 shares of a listed company. He later disposed of these shares through a private arrangement (off-market), and the transaction was NOT settled through the National Clearing Company of Pakistan Limited (NCCPL). How will the capital gain on these shares be taxed?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: B) B) It will be taxed under the Normal Tax Regime (NTR) at applicable progressive slab rates.
Explanation
A proviso in Section 37A states that the disposal of listed company shares made *otherwise* than through a registered stock exchange and NOT settled through NCCPL falls outside the ambit of Section 37A (Separate Block) and is instead taxed under Section 37 under the Normal Tax Regime (NTR).
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