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Prize Bond Tax in Pakistan

This page explains how withholding tax applies to prize bond winnings, why your filer status matters, and how the claim process works, so you know what to check before you collect a prize.

Extrade Pakistan editorial team ·

On this page
  1. How tax on prize bond winnings works
  2. Prize bond tax rate: filer vs non-filer
  3. How to claim a prize bond prize
  4. Related pages
  5. Frequently asked questions

How tax on prize bond winnings works

A prize bond is a bearer or registered savings instrument from the Government of Pakistan, sold through National Savings (CDNS) and authorised banks. It pays no profit. Holders instead enter regular draws for cash prizes. See Prize bonds for the basics.

Prize bond winning tax is collected as withholding tax. This means the office that pays your prize deducts the tax first and gives you the net amount. You do not pay it separately at the counter.

For most individuals this deduction is treated as the final tax on that prize. Confirm how it applies to your own return with the Federal Board of Revenue (FBR) or a tax adviser.

Prize bond tax rate: filer vs non-filer

The prize bond withholding tax rate depends on whether you are on the FBR Active Taxpayers List (ATL):

Your status What it means Effect on deduction
Filer Your name is on the ATL on the date the tax is deducted Standard rate for filers
Non-filer You are not on the ATL Higher rate set for non-filers

Prize bond tax for non-filers is noticeably higher than for filers. Joining the ATL is done by filing your income tax return, and status is checked against the list when the tax is deducted.

The rates are set in the Income Tax Ordinance and are often changed by the federal budget. We do not state a rate on this page because an old figure can be wrong. Before you claim, check the current rate in:

Note the date you checked. A budget change can apply to prizes paid after that date.

How to claim a prize bond prize

Steps differ slightly for bearer bonds and registered bonds. The general process:

  1. Check the result. Match your bond numbers against the official list. See Check prize bond results and the Draw schedule.
  2. Collect documents. Usually the original winning bond, your CNIC and a copy, and the claim form from the paying office.
  3. Submit the claim. Go to an authorised office, such as a designated bank branch, a State Bank of Pakistan Banking Services Corporation office, or a National Savings centre, depending on the bond and prize size. Ask CDNS or your bank which office handles your claim.
  4. Tax is deducted. The office checks your ATL status, applies the matching rate and pays the net prize, usually to your bank account.
  5. Keep the record. Ask for proof of the tax deducted. You may need it for your tax return.

Claims must be made within a set period after the draw. Check the current deadline with CDNS so a prize does not lapse.

Registered premium prize bonds

Premium prize bonds are registered in the holder's name and linked to a bank account. Prizes are usually credited to that account with withholding tax already deducted, so no paper bond needs to be presented. Check the exact procedure with the bank that issued the bond.

Frequently asked questions

Is there tax on prize bond winnings in Pakistan?

Yes. Withholding tax is deducted from the prize at the time of payment, so you receive the net amount.

What is the current prize bond tax rate?

Rates change with the federal budget. Check the current FBR withholding tax rate card or the CDNS website before you claim.

Why does a non-filer pay more?

The law sets a higher withholding rate for people who are not on the Active Taxpayers List. Filing your return and appearing on the ATL puts you on the filer rate.

Can I claim back tax deducted on a prize?

For most individuals the deduction is treated as final tax on that prize, so it is usually not refunded. Ask the FBR or a tax adviser about your own case.

Who deducts the tax?

The office that pays the prize, such as the authorised bank, the SBP Banking Services Corporation or National Savings, deducts it before paying you.

Do I need to show prize bond winnings in my tax return?

Keep the deduction record and ask the FBR or a tax adviser how to report it in your return.

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