44. Rate of income tax on sale of any share or a warrant

The profits of any person other than a unit trust or mutual fund, from the sale of any share or a right to any share or a share warrant shall, where such sale takes place within two years from the date of acquisition of such share, right to a share or a share warrant, be liable at the appropriate rate specified in the Fifth Schedule to this Act :

Provided that the provisions of this section shall not apply in relation to the sale of any share, if in respect of such sale the share transaction levy under section 7 of the Finance Act,

No. 5 of 2005 has been paid.

For the purposes of this section the “profits”, includes gains and shall be computed, after deducting any expenditure allowable under section 25 directly related to the disposal of such shares and the cost of acquisition of such shares, from the sale proceeds, and shall be the net profit or gain for that year, after deducting losses incurred in the same year from the disposal of shares, rights or warrants, calculated in the same manner as mentioned above, had such loss been a profit or gain would have been liable to tax under this paragraph, have been held for a period not exceeding twenty four months by such person, and in the event that the sale comprises shares of the same company, acquired on different dates, the cost of such shares or the period of ownership shall be determined on a first in first out basis of such shares. Any excess of such deductible loss over the profits or gain for any year may be carried forward to the succeeding year and so on, and deducted in computing the net profits or gains under this paragraph.