Stock market to start the new fiscal year with implementation of new rate for CGT and windfall gain tax

The start of the new fiscal year brings in the implementation of new policies in all the sectors. Similarly, many policies were unveiled in the previous year to be implemented from the FY 2075/76 in the stock market as well.

The investors need to pay Capital Gain Tax of 7.5% on the transaction of the stocks in the secondary market. The mode of determining the base price for the capital gain tax has not been decided as of yet. A committee had been created for the purpose of determination of the base price. NEPSE says that the opinion of the participants have already been complied and sent to the Ministry of Finance. Many participants, investors and brokers had suggested the use of Weighted Average Method for the determination of base price. Previously, the CGT rate was fixed at 5%.

Similarly, the recent policy implemented by the CDSC will levy windfall gain tax in case of close out. Previously, seller had to pay a fine of 20% to the buyer in case of shortage of security. However, as of Shrawan 1, 2075, 25% tax will be deducted from the amount received by the buyer from the fine amount. The seller will not be entitled to pay any extra amount.