The FBR (Federal Board of Revenue) has amended Advance tax on Prize bonds and winnings. Which is applicable during the tax year 2021 (July 01, 2020, to June 30, 2021). Similarly, Income Tax Ordinance, 2001 (updated June 30, 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:
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Advance tax on Prize bonds 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.
The withholding tax on prize bonds is 15% of the gross sum on prizemoney made by winning a quiz, bond, and crossword. The tax rate will be expanded by 100%. If the beneficiaries of prize cash isn’t on the Active Taxpayers List (ATL).
The withholding tax rate will be 20% of the gross sum on prizemoney made by winning. The winning could be a pool, lottery, prize on winning a test, prize, offered by organizations for the advancement of deals crossword or riddles. The tax on prize bond will be expanded by 100% in the event that the beneficiary of the sum isn’t on the ATL.
Peoples in develop Societies pay taxes. You should also read the Benefits for Filler section articles. Which describes well about the benefits being a responsible resident of Pakistan