We have data on Capital Gain Tax on shares in Nepal.
Meaning
Capital Gain means surplus when the selling price of a product is higher than the buying price of an asset. In the case of shares or stock, if you buy the ABC company 100 units at Rs. 100. Similarly, if you sell the same share at Rs. 150 per share,
The capital gain = 100*100 – 100*150 = Rs. 5000.
Capital Gain Tax on Shares in Nepal
There are two rates for capital gain tax on Shares.
| Holding Period | Capital Gain Tax Rate |
|---|---|
| Up to 1 year | 7.5% |
| More than 1 year | 5% |
For Example:
a. Suppose A buys the share 100 units at Rs. 200 ABC company and sells 100 Units within a year for Rs. 250. On the other hand, the remaining 100 units are sold are 1 year for Rs. 350.
For Within Year
Total Cost: Rs. 200*100 = Rs. 20,000.
Selling Amount: Rs. 250*100 = Rs. 25,000
Capital Gain or Profit= Selling Amount – Total Cost
= Rs. 25,000 – Rs. 20,000
= Rs. 5,000.
Capital Gain Tax = Rs. 5000*7.5%
= Rs. 375.
The broker will deduct Rs. 375 along with broker commission and DP charge and deposit the remaining amount in Mr. A’s account.
For More Than 1 Years
Total Cost: Rs. 200*100 = Rs. 20,000.
Selling Amount: Rs. 350*100 = Rs. 35,000
Capital Gain or Profit= Selling Amount – Total Cost
= Rs. 35,000 – Rs. 20,000
= Rs. 15,000.
Capital Gain Tax = Rs. 15000*5%
= Rs. 750.
The broker will deduct Rs. 750 along with broker commission and DP charge and deposit the remaining amount in Mr. A’s account.
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Frequently Asked Questions
a. How much tax is paid on selling shares?
= Investor has to pay 7.5% tax on share if he/she sells the share within one and for more than one-year holding, he/she needs to pay 5% tax.
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