Tax deductions on Prize Bonds: What winners need to know

The National Savings Division has announced the results of the Rs100 prize bond draw, conducted under the supervision of the State Bank of Pakistan (SBP) at the National Savings Centre in Rawalpindi.

The first prize of Rs700,000 was awarded to bond number 247226. Second prizes of Rs200,000 each were won by bond numbers 116352, 223214, and 727137. Additionally, 1,696 participants secured the third prize of Rs1,000 each.

Winners are reminded that, as per government policy, a 15% tax is deducted from prize money for individuals listed on the Active Taxpayers List (ATL), while a 30% tax applies to non-filers. For instance, a first prize of Rs700,000 would result in a deduction of Rs105,000 for filers and Rs210,000 for non-filers.

Winners are advised to claim their prizes at any SBP Banking Services Corporation office, where amounts up to Rs20,000 can be collected the same day, subject to bond clearance. Prizes exceeding this amount are distributed through payment orders on or after specified claim dates.

Prize bonds continue to be a favored investment in Pakistan, offering secure savings with the chance to win cash rewards.

The Rs100 prize bond draws occur quarterly, with the next scheduled for May 15, 2025, in Sialkot. Participants are encouraged to stay informed about tax obligations and claim procedures to ensure a smooth redemption process.