Prize bonds in Pakistan are a popular investment option where you can win cash prizes through lucky draws. However, many people are often confused about how tax is deducted from prize bond winnings.

In Pakistan, prize bond winnings are subject to withholding tax under Section 156 of the Income Tax Ordinance. The tax is deducted at the time of payment, so you receive your prize amount after tax deduction.

Prize Bond Tax Rates

The tax rate depends on your filer status:

• Filer: 15% tax on prize winnings
• Non-Filer: 30% tax on prize winnings

This means filers receive a higher net amount compared to non-filers.

How to Calculate Prize Bond Tax Manually

You can easily calculate your tax using this simple formula:

Tax Amount = Gross Prize Amount × Tax Rate

Then:

Net Amount = Gross Prize Amount − Tax Amount

Example Calculation

If your prize bond win is Rs. 100,000:

• Filer (15% tax):
  Tax = 15,000 → You receive 85,000
• Non-Filer (30% tax):
  Tax = 30,000 → You receive 70,000

Use an Online Calculator

To make things easier, you can instantly calculate your prize bond tax using this tool:

👉 Prize Bond Tax Calculator

It automatically shows your tax deduction and net winnings based on current rates.

Final Thoughts

Understanding prize bond tax helps you know exactly how much you will receive before claiming your winnings. Using a calculator saves time and avoids confusion, especially with changing FBR rules.