The National Board of Revenue (NBR) has halved the tax rate on capital gains from the sale of shares in listed companies. The maximum tax rate on capital gains has been reduced from 30 percent to 15 percent.
A notification in this regard has been issued today on Monday. NBR Public Relations Officer Syed A Mu'men informed this information in a circular.
According to NBR guidelines, capital gains of more than Rs 50 lakh from share transactions of listed companies will be taxed at the rate of 15 per cent. Earlier this tax rate was 30 percent.
Meanwhile, the existing law imposes a maximum surcharge of 35 percent on the tax payable by wealthy taxpayers. In this, capital gains earned from the capital market are taxed at a total rate of 40.50 percent for income tax and surcharge as per the existing law.
As per NBR's new guidelines, the tax rate on capital gains from sale of shares within 5 years of purchase or after 5 years has been fixed at 15 percent. As a result, from July 1, 2024 to June 30, 2025, 15 percent tax will have to be paid on capital gains of more than Tk 50 lakh from all share transactions listed in the capital market.
Apart from this, if the amount of net assets of the taxpayer is more than 4 crore rupees, 10 percent surcharge will be paid if it is more than 10 crore rupees, 20 percent if it is more than 20 crore rupees and 35 percent if it is more than 50 crore rupees.
As a result, according to the new notification, if a taxpayer has a net worth of more than Tk 50 crore, he will be taxed at the rate of 15 percent on the additional income of Tk 50 lakh earned from the stock market and 35 percent on the 15 percent of the tax payable, i.e. 5.25 percent surcharge including a total of (15 percent + 5.25 percent) 20.25 percent tax to be paid.
However, if the net worth of the taxpayer is less than 50 crore rupees, the rate of surcharge may be lower (10 percent, 20 percent and 30 percent mentioned above) instead of 35 percent. In that case, the total rate of income tax and surcharge will be less than 20.25 percent on the basis of net assets.
