Withholding tax rate on winning prize bonds

KARACHI: The rate of withholding tax on prizes and winning under Section 156 of Income Tax Ordinance, 2001 for Tax Year 2019.

 

 

The FBR issued Withholding Tax Card for Tax Year 2019 under which every person making payment to recipient on account of winning of prize on prize bond, cross word, raffle, lottery and quiz, shall collect following rates:

i. payment made for prize on quiz bond and cross word:

Filer: 15 percent

Non-filer: 25 percent

ii. Payments on winning from a raffle, lottery, prize on winning a quiz, prize, offered by companies for promotion of sale crossword puzzles, the withholding tax shall be 20 percent.

The withholding tax under Section 156 of the Ordinance shall be final tax for the recipient of prize payment.

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3 Comments

  1. I am filer and paid 15% tax approximately Rs.15,000/- on Prize bonds at SBP Counter against prize bonds but due to system failure tax certificate not collected. Now how can I get at it was associated with my CNIC but they are un-able facilitate customers.

  2. Dear Naqvi ; non collection of Certificate is of no consequence as the tax paid against a prize bond is a final tax. It is just like not collecting ticket of Daewoo after having reached your destination.

    1. Sir,
      Where to show income from prize bond winnings in tax return and should we enter withholding tax without any certificate ?

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