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Income tax on prize money of prize bonds?
09-20-2011, 09:30 PM,
Income tax on prize money of prize bonds?
State Bank deducts 10% withholding tax on payment of prize money of prize bonds. Same is the rule for profit on fixed deposits, Defense Saving Certificates etc. So do we need to include prize/profit in our taxable income and adjust that 10% withholding tax OR that 10% is final and no more tax needs to be paid on that income?
09-20-2011, 10:38 PM,
State bank deducts withholding tax on prize bonds because s.156 of Income Tax Ordinance, 2001 requires it do so. Further s.156(3) says that such tax is final tax. Hence this will appear on page 2 and is not adjustable.
Deduction on profit on fixed deposit & DSCs is not made u/s 156 but u/s 151, which is also final.
09-20-2011, 11:43 PM,
Thanks for helpful response

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