EXEMPTED CAPITAL GAINS

Capital gains arising from the following cases are not includible in the total income of the person and hence exempt from tax.

Schedule Second Clause 110

Any income chargeable under the head “capital gain” being income from the sale of modaraba certificates or any instrument of redeemable capital or shares of a public company, an insurance company and the Pakistan Telecommunication Corporation Vouchers issued by the Government of Pakistan, derived by a taxpayer in respect of any assessment year ending on or before 30th day of June, 2010, is exempt from tax. Such capital gains will be taxed if shares are sold on or after 1 July 2010, as per procedure explained above.

Schedule Second Clause 113

Any income chargeable under the head “capital gains” derived by a person from an industrial undertaking set up in an area declared by the Federal Government to be a special industrial zone, is exempt from tax for a period of five years from the date of commencement of its commercial production.

Schedule Second Clause 114

Any income chargeable under the head “capital gains” Dfa Ho derived by a per- son within the meaning of the Export Processing Zones Authority Ordinance, 1980, is permanently exempt from tax.