Income Tax Ordinance, 2001 — Section 151A: Gain arising on disposal of certain debt securities

5[151A. Gain arising on disposal of certain debt securities. — (1) Every custodian of debt securities including a banking company responsible to maintain Investor Portfolio Securities (IPS) Account on behalf of holder of a debt security shall at the time of disposal of debt securities including government securities deduct tax at the rate specified in Division IIIAA of Part III of the First Schedule on the gross amount of capital gain arising to such holder and deposit the same in government treasury: Provided that this section shall not apply on disposal of debt securities made through registered stock exchange and which are settled through NCCPL. 1 The words, letters and brackets “clauses (a) and (b)” substituted by the Finance Act, 2003. 2 Sub-section (1A) inserted by the Finance Act, 2021. 3 Substituted by the Finance Act, 2015. The substituted sub-section (3) read as follows: “(3) Tax deductible under this section shall be a final tax on the profit on debt arising to a taxpayer other than a company: Provided that in the case of a non-filer other than a company the final tax shall be equal to the tax deductible in the case of filer and the tax deducted in excess of that shall be advance income tax adjustable against tax liability.” 4 The word “final” substituted through Finance Act, 2019. 5 Section 151A inserted by the Finance Act, 2025. 311 Chapter X – Procedure

(2)The capital gain arising to the holder on disposal of debt security mentioned in sub-section (1) shall be computed in accordance with the formula provided in sub-section (1A) of section 37A of the Ordinance.]