Capital Gain Tax to be calculated on Weighted Average Price of transaction; Rs.100 to be taken as base price if purchase record is unavailable: CDS and Clearing Limited

After the implementation of new Capital Gain Tax laws, the investors are required to calculate the CGT after trade and settle it accordingly.

The CGT is required to be calculated on the basis of weighted average price and settled in the regulation time of the next day of the trade (T+1). For this, the record of the purchase of share must be provided indicating the purchase price. If the record of purchase of shares is not available, the purchase price will be assumed to be Rs.100 and CGT will be calculated accordingly.

(For Soaltee Hotel Limited and Mutual Funds, base price will be Rs.10)

CDS and Clearing Limited has directed the Stock Broker Association of Nepal to instruct the investors to fill CGT form after determining the weighted average price of the investment and based on that make entry in the settlement system of CDS.

The CGT form can be submitted to the respective brokers through email or physically. CDS and Clearing has informed that this will be implemented on transactions taking place from 1^st Shrawan, 2076.