Stocks Observer. com

Mohammed Sohail Local and foreign investors have raised many questions since the imposition of tax on gains made through share trading. It is so, as this tax has been imposed after a gap of more than three decades. In order to clarify some issues, following is a response to frequently asked queries. These answers are based on our understating and may change if tax authorities clarify the matter which they hopefully will in next few days. When will this tax be imposed? This tax will be imposed from July 1, 2010 on realised capital gains. There is some confusion regarding tax rate mentioned for tax year 2010 which we believe would be clarified as this tax will not be implemented before June 30, 2010. What is the rate of tax? For FY11 the gains realised from securities held for less than six months, the rate of annual income tax is 10 per cent and for securities held for more than six months and less than one year the annual tax liability would be 8 per cent of the gained amount. Again th...