KARACHI: The Federal Board of Revenue has asked non-filers to pay 25 per cent withholding income tax on winning prize bonds.
According to withholding tax rate card for year 2017/2018 issued by the FBR, under section 156 of Income Tax Ordinance, 2001 every person making payment is required to withhold tax on payment of prize or winnings.
As per the section payment made for prize on quiz bond and cross word the withholding tax rate will be 15 percent in case of filer of tax return and 25 percent in case of non-filer of return.
However, the withholding tax will be 20 percent at the time of payment on winning from a raffle, lottery, prize on winning a quiz, prize, offered by companies for promotion of sale crossword puzzles.
