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Capital Gain Tax on shares in Nepal

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Capital Gain Tax on shares in Nepal
Capital Gain Tax on shares in Nepal

We have data of Capital Gain Tax on shares in Nepal.

Meaning

Capital Gain means surplus when selling price of a product is higher than buying price of a assets. In Case of share 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 than,

The capital gain = 100*100 – 100*150 = Rs. 5000.

Read More: Broker Commission in Nepal: CLICK HERE

Capital Gain Tax on shares in Nepal

There two rate for capital gain tax on Shares.

Holding PeriodCapital Gain Tax Rate
Up to 1 years7.5%
More than 1 years5%

For Example:

a. Suppose A buys the share 100units at Rs. 200 of ABC company and sells 100 Units within year for Rs. 250. In the other hand, remaining 100 units are sell are 1 years 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 is Mr. A 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 is Mr. A account.

Other Important Links:

a. Dividend Tax Rate in Nepal: CLICK HERE

Frequently Asked Questions

a. How much tax is paid on selling shares?

= Investor has to pay 7.5% tax on share if he/she sell the share within one and for more than one years holding, he/she need to pay 5% tax.