Prize Bond Tax

The rate of withholding prize bond tax on 15% at source at the time of payment of prize money, in case of filers against the prizes won on or after 01-07-2016.

Prize Bond Tax Deduction Rate For Non Filer?

If someone is non filer, So tax will be 30%.

Prize Bond Tax Deduction Rate 2022-2023?

The FBR has amended Advance tax on Prize bonds and winnings. Which is applicable during the tax year 2021 (July 2020, to June 2021). Similarly, Income Tax Ordinance. 2001 updated June 2020 after amendments added through Finance Act, 2020. This article describes the benefits of being a filer in respect of withholding tax on prize bonds. The FBR has ruled the Advance tax on Prize bonds and winnings, under section 156, as follow:

Advance Prize bond tax and winnings u/s 156 of Income Tax Ordinance, 2001. Where each individual making payment will charge the withholding tax from the beneficiary of the prize or rewards at the time the prize or rewards are really paid. The tax charged under this section will be treated as final tax.

In addition to withholding tax, prize bond winnings in Pakistan are also subject to income tax. The income tax rate on prize bond winnings depends on the amount of the winnings and the tax bracket you fall into. Generally, the income tax rate on prize bond winnings ranges from 5% to 35%.

It's important to note that tax laws and rates can change over time, so it's essential to stay up-to-date on the latest tax regulations related to prize bonds. Additionally, it's important to consult with a qualified tax professional for personalized advice on your specific tax situation.

Summary

Prize bond winnings in Pakistan are subject to both withholding tax and income tax, which can significantly impact the overall amount of your winnings. As such, it's important to carefully consider the tax implications before investing in prize bonds and to stay informed about any changes to the tax laws and regulations.