Tax On Prize Bond

Tax deduction on winning prize bond

According to the government policy, there is a tax applicable on the prize value of winnings. The tax is deducted by the National Savings organization before disbursing the prize money. This tax policy aims to ensure compliance with tax regulations and encourage individuals of Pakistan to file their income tax returns.

• Filers: Individual filers are taxed at a 15% rate on the full value of their prizes
• Non-filers: Non-filers, individuals who haven’t filed income tax returns, face a higher tax rate of 30% on the total prize value.