Total return on a PSX position after capital gains tax.
Net return
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Gross gain
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CGT
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Net gain
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The return that survives the tax
Booking a profit on the Pakistan Stock Exchange feels good until the capital gains tax lands. This calculator shows you the number that actually matters, the return left in your hands after that tax, rather than the gross gain your broker statement flatters you with. You enter your buy price, your sell price, the number of shares, and your filer status, and it computes the gross gain, the capital gains tax on it, the net gain, and the percentage return on your original outlay. It is built for active PSX investors and for anyone deciding whether to realise a position now or hold.
The logic is deliberately tight. Gain is simply the difference between sell and buy prices multiplied by your share count. Tax applies only to a positive gain. A loss attracts no tax at all, so the tool leaves a loss untouched and lets the negative return speak for itself.
How capital gains on listed shares are taxed
For listed securities acquired on or after 1 July 2024, Pakistan moved to a flat rate rather than the old holding-period sliding scale. The rate this calculator applies is 15 percent for filers, that is, people on the Active Taxpayer List. Non-filers do not get off lighter: they are taxed at their normal slab rate with a 15 percent floor, so for most non-filers the effective hit is at least the same 15 percent the tool uses, and often more once slab rates are layered in. The calculator models the 15 percent figure for both, treating it as the floor case. These rates are set by the Federal Board of Revenue (FBR) and are exactly the kind of figure the annual Finance Act revisits, so confirm the current rate and the relevant acquisition-date rules with the FBR before you file.
Worth knowing: tax on PSX gains is typically collected through the clearing system rather than left for you to remit, but the responsibility to report still sits with you, and your acquisition date governs which regime applies. Older holdings bought before the cutover may still sit under holding-period bands.
Buying 1,000 shares at PKR 100 and selling at PKR 150
Run the defaults. You buy 1,000 shares at PKR 100 each, a cost of PKR 100,000, and sell at PKR 150, for proceeds of PKR 150,000. The gross gain is PKR 50,000. As a filer the calculator applies 15 percent, so the capital gains tax is PKR 7,500, leaving a net gain of PKR 42,500. Measured against your PKR 100,000 outlay, that is a net return of 42.50 percent.
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The result box shows the headline as 42.50 percent and the net gain as "Rs 42,500". The chart breaks the PKR 50,000 gross gain into the slice you keep and the slice that goes in tax.
The chart below shows the gross gain split into net gain kept and capital gains tax paid.
The loss case and a discipline most investors skip
If your sell price is below your buy price, the calculator shows a negative gain and charges no tax, because Pakistan does not tax a capital loss. Sell those same 1,000 shares at PKR 80 instead of PKR 150 and you book a loss of PKR 20,000, a return of negative 20 percent, with zero tax. The figure to act on is that capital losses on securities can usually be set against capital gains on other securities within the rules, so a disciplined investor tracks realised losses and uses them to shelter gains rather than letting them sit idle. This tool does not net positions for you, so keep your own running tally across the tax year.
A second point investors overlook: the percentage return here is measured before brokerage commission, CDC charges, and any sales-tax on services on those fees. Real-world net return is a touch lower than the screen suggests, so for tight decisions add your transaction costs by hand. And because the 15 percent rate and the acquisition-date rules can change each budget, treat the output as the modelled position and verify with the FBR.
Is dividend income taxed the same as a capital gain?
No, they are separate. This calculator only handles the capital gain on price appreciation. Dividends paid by the company are taxed under a different withholding rate entirely, deducted before the dividend reaches you. If your return on a stock comes partly from dividends and partly from price growth, you need to account for the dividend tax on top of the capital gains tax shown here.
Does it matter how long I held the shares?
Under the post-1 July 2024 flat-rate regime the calculator models, the holding period no longer changes the rate for those shares, which is a shift from the older sliding scale where longer holds were taxed more lightly. If your shares were acquired before that cutover, holding-period bands may still apply, so check the acquisition date against the current FBR rules.