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TX D Capital gains

Written by Saad Rahman (ACCA)

6 ACCA Taxation (Pakistan) questions with answers and explanations.

Printable worksheet with answer key

All questions with answers
  1. Under ACCA's table, what is the tax rate on a gain from selling securities acquired before 1 July 2013?

    • 1 0%
    • 2 15%
    • 3 29%
    • 4 12.5%
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    Correct answer: 0%

    Securities acquired before 1 July 2013 are taxed at 0%.

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  2. Shares acquired after 1 July 2024 by a person on the ATL are sold for Rs. 1,500,000. The cost was Rs. 1,000,000 and disposal costs were Rs. 20,000. What is the tax at 15 percent?

    • 1 Rs. 225,000
    • 2 Rs. 150,000
    • 3 Rs. 72,000
    • 4 Rs. 75,000
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    Correct answer: Rs. 72,000

    Gain = 1,500,000 - 1,000,000 - 20,000 = 480,000. Tax = 15% x 480,000 = 72,000.

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  3. A person not on the ATL (an individual) disposes of securities acquired after 1 July 2024. What rule does ACCA's table give?

    • 1 Nil
    • 2 A flat 5 percent
    • 3 The rate is always 29 percent
    • 4 The slab rates apply, subject to a minimum rate of 15 percent
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    Correct answer: The slab rates apply, subject to a minimum rate of 15 percent

    Individuals and AOPs not on the ATL are taxed at the slab rates, subject to a minimum of 15%.

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  4. For immovable property acquired on or before 30 June 2024, how does the rate change as the holding period gets longer?

    • 1 It is always 15 percent
    • 2 It stays the same
    • 3 It falls
    • 4 It rises
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    Correct answer: It falls

    Longer holding periods get lower rates, and some become 0 percent.

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  5. A person has a capital loss and also salary income in the same year. What is the general rule?

    • 1 The capital loss can be set only against capital gains
    • 2 It can be set against all income
    • 3 It is refunded in cash
    • 4 It can be set against salary
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    Correct answer: The capital loss can be set only against capital gains

    Capital losses are restricted to capital gains.

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  6. A company sells securities that it acquired after 1 July 2024, and it is not on the ATL. What is the rate for a small company in ACCA's table?

    • 1 Nil
    • 2 20%
    • 3 29%
    • 4 15%
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    Correct answer: 20%

    Small companies are at 20% and other companies at 29%.

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