If you sold listed shares or other securities in Pakistan this year, the tax on your gain isn’t a flat rate — it’s set entirely by how long you held the security under Section 37A of the Income Tax Ordinance. Hold for over six years and the gain is tax-free; sell within a year and you pay the full 15%. Use the calculator below to estimate your liability, then check the table for the exact bracket that applies.
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Capital Gains on Securities – Holding Period Rates (Section 37A)
| Holding Period | Reduced Tax Rate (%) |
|---|---|
| Does not exceed one year | 15 |
| Exceeds one year but does not exceed two years | 12.5 |
| Exceeds two years but does not exceed three years | 10 |
| Exceeds three years but does not exceed four years | 7.5 |
| Exceeds four years but does not exceed five years | 5 |
| Exceeds five years but does not exceed six years | 2.5 |
| Exceeds six years | 0 |
In practice, the holding period is tracked from your actual purchase settlement date in the CDC account, not the order date — brokerages report this to FBR via the NCCPL (PSX’s clearing arm), so the figure on your calculator here should match what shows up pre-filled in your IRIS return. If it doesn’t match, that’s usually a broker-reporting mismatch worth chasing before you file, not something to override on your own return. Selling other property instead of securities? Use our Capital Gains on Immoveable Property Calculator, or get in touch via our contact page if you want the numbers double-checked before filing.
Worked Example
If you bought shares and sold them 18 months later with a gain of PKR 500,000, that falls in the “exceeds one year but does not exceed two years” bracket — a 12.5% rate, so roughly PKR 62,500 in tax on the gain. Sell the same position at 8 months instead of 18, and the rate jumps to the full 15% (PKR 75,000) — a real cost difference for a fairly small change in timing.
A Change That Matters if You’re a Non-Filer
For securities acquired on or after 1 July 2025, non-ATL (non-filer) persons face a 100% enhanced rate on the gain — effectively doubling the tax compared to what a filer pays on the same transaction. Securities acquired before that date follow the older treatment. This is one more reason ATL status isn’t just about lower withholding on unrelated transactions — for anyone actively trading, it directly affects capital gains tax on the trades themselves.
How NCCPL Reporting Actually Works
Your brokerage doesn’t calculate and withhold this tax manually — the National Clearing Company of Pakistan Limited (NCCPL) tracks your holding periods and gains across your CDC account and reports computed capital gains tax directly to FBR, which is why the figure usually shows up pre-filled in your IRIS return under the Capital Gains section. If the number in your return doesn’t match your own calculation, the mismatch is more often a broker-reporting timing issue (a trade settled a day later than expected, for instance) than an error in the rate itself — worth reconciling before you file rather than silently accepting either figure.
Frequently Asked Questions
Does this rate table apply to mutual fund units too?
Mutual funds and REIT units have their own specific tax treatment which can differ from direct equity holdings — don’t assume the Section 37A share table applies identically without checking the specific instrument.
What if I hold both old (pre-2025) and new securities of the same company?
NCCPL generally applies a first-in-first-out (FIFO) method to determine which specific shares were disposed of, which is what determines whether the older or newer acquisition-date rules apply to a given sale.
Is this tax final, or adjustable against my other income?
Capital gains tax on securities under Section 37A is generally treated separately from your normal taxable income calculation — it isn’t merged into your regular income tax slab the way, say, rental income is.
FAQs
Does the holding period reset if I sell part of my shares in a company?
No — each purchase lot (tranche) has its own holding period tracked separately by the NCCPL, typically on a FIFO (first-in-first-out) basis. Selling part of your holding disposes of your oldest lot first, not an average across everything you own.
How does this work for non-resident investors?
Non-resident individuals investing through a Special Convertible Rupee Account (SCRA) generally follow the same Section 37A rate structure, but non-ATL status (common for non-residents without a Pakistani NTN) means the enhanced non-filer rate applies — worth registering for an NTN even as a non-resident if you’re investing regularly.
Is redeeming mutual fund units taxed the same way as selling shares?
Broadly yes — mutual fund unit redemption is treated as a disposal of securities under the same Section 37A framework, though the specific holding-period tracking is handled by the Asset Management Company rather than NCCPL directly.
