Section 38: Deduction of losses in computing the amount chargeable under

38. Deduction of losses in computing the amount chargeable under the head “Capital Gains”.— (1) Subject to this Ordinance, in computing the amount of a person chargeable to tax under the head “Capital Gains” for a tax year, a deduction shall be allowed for any loss on the disposal of a capital asset by the person in the year. (2) No loss shall be deducted under this section on the disposal of a capital asset where a gain on the disposal of such asset would not be chargeable to tax. (3) The loss arising on the disposal of a capital asset by a person shall be computed in accordance with the following formula, namely: — A – B where — A is the cost of the asset; and B is the consideration received by the person on disposal of the asset. (4) The provisions of sub-section (4) of section 37 shall apply in determining component A of the formula in sub-section (3). (5) No loss shall be recognized under this Ordinance on the disposal of the following capital assets, namely:— (a) A painting, sculpture, drawing or other work of art; (b) jewellery; (c) a rare manuscript, folio or book; (d) a postage stamp or first day cover; (e) a coin or medallion; or (f) an antique. PART VI HEAD OF INCOME: INCOME FROM OTHER SOURCES

Effective date: 2001-09-13

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