Prize Bond Tax for Filer and Non-Filer in Pakistan 2026
The prize bond tax deduction rate is 15% for an ATL filer and 30% for a non-ATL person. Tax is deducted from the winning prize amount, not from the face value of the prize bond. For example, tax on a Rs. 100,000 prize is Rs. 15,000 for an ATL filer and Rs. 30,000 for a non-ATL person.
No minimum threshold. Every prize bond win — Rs. 1,000 or Rs. 75,000,000 — is subject to Section 156 WHT.
Deducted at encashment. On a Rs. 1,000,000 prize, tax is Rs. 150,000 and the filer receives Rs. 850,000.
15 percentage points higher. On a Rs. 1,000,000 prize, tax is Rs. 300,000 and the non-ATL winner receives Rs. 700,000.
| Status | Tax Rate | Tax on Rs. 100,000 Prize | Net Prize |
|---|---|---|---|
| ATL filer | 15% | Rs. 15,000 | Rs. 85,000 |
| Non-ATL / non-filer | 30% | Rs. 30,000 | Rs. 70,000 |
How Prize Bond Tax Works in Pakistan
Prize bonds are Government of Pakistan savings instruments administered through the State Bank of Pakistan. For tax purposes, the important event is the winning of prize money: Section 156 withholding is applied when the prize is paid.
Purchased without CNIC documentation. Anonymous bearer instrument. Increasingly restricted — FBR and SBP have pushed for documented alternatives.
Require CNIC registration at purchase. Documented investment. Prize winnings are directly traceable to the holder's CNIC for WHT application.
Prize Bond Tax Deduction by Prize Amount
The tax is deducted from the prize money you win, not from the face value of the bond. The same 15% ATL and 30% non-ATL rates apply to the winning amount under Section 156.
| Gross Prize | ATL Tax 15% | ATL Net | Non-ATL Tax 30% | Non-ATL Net |
|---|---|---|---|---|
| Rs. 10,000 | Rs. 1,500 | Rs. 8,500 | Rs. 3,000 | Rs. 7,000 |
| Rs. 100,000 | Rs. 15,000 | Rs. 85,000 | Rs. 30,000 | Rs. 70,000 |
| Rs. 500,000 | Rs. 75,000 | Rs. 425,000 | Rs. 150,000 | Rs. 350,000 |
| Rs. 1,000,000 | Rs. 150,000 | Rs. 850,000 | Rs. 300,000 | Rs. 700,000 |
Rs. 750 Prize Bond Tax Deduction & Amount After Tax 2026
If you hold a Rs. 750 prize bond, the tax is calculated on the actual prize amount you win. For example, if the gross prize is Rs. 100,000, an ATL filer would have Rs. 15,000 deducted and receive Rs. 85,000, while a non-ATL winner would have Rs. 30,000 deducted and receive Rs. 70,000.
Rs. 1,500 Prize Bond Tax Deduction & Amount After Tax 2026
The same rule applies to a Rs. 1,500 prize bond: 15% for an ATL filer and 30% for a non-ATL person, calculated on the gross winning amount. The bond denomination itself does not determine the tax rate.
Prize Bond Tax for Filer and Non-Filer
For an ATL filer, prize bond winnings are subject to 15% withholding tax. For a non-ATL person, the rate is 30%. This means the non-ATL deduction is double the ATL deduction.
Rs. 1,000,000 prize → ATL tax Rs. 150,000 / net Rs. 850,000 · Non-ATL tax Rs. 300,000 / net Rs. 700,000
Because the rate depends on ATL status at the time the prize is processed, check your status before encashment if you expect the filer rate to apply.
How Prize Bond Encashment and WHT Works
When you win a prize and present your bond for encashment, the withholding agent (SBP or authorized agent) deducts Section 156 WHT before paying out:
- Check the quarterly prize bond draw results published by SBP.
- If your bond number matches a prize, present it for encashment within the validity period (typically 6 years from draw date).
- For registered (Premium) bonds — encashment through the registered bank or SBP. CNIC verification applies your ATL filer status automatically.
- Provide the required identity and bond documents so the paying agent can apply the correct ATL rate of 15% or non-ATL rate of 30%.
- The encashment agent deducts Section 156 WHT at the applicable rate and pays out the net amount.
- A WHT deduction certificate is issued — keep this for your annual return filing.
Declaring Prize Bond Winnings in Your FBR Return
Prize-bond winnings fall under the final-tax regime governed by sections 156 and 169. Keep the deduction certificate and disclose the prize in the relevant final-tax portion of the return where the form requires it.
- Collect the WHT deduction certificate from the prize bond encashment.
- Log in to FBR IRIS and open your annual income tax return.
- Declare the gross prize and Section 156 deduction in the relevant final-tax fields available for the tax year.
- Do not treat the Section 156 deduction as an ordinary adjustable advance-tax credit.
- Match the IRIS entry with the certificate and seek professional help if the current form labels differ.
Common Prize Bond Tax Mistakes in Pakistan
- Not establishing ATL status at encashment — the paying agent may apply the 30% non-ATL rate.
- Not declaring prize winnings in the annual return — prize income is taxable and must be reported.
- Not collecting the WHT deduction certificate at encashment — needed to support the final-tax disclosure.
- Missing the 6-year encashment window — unclaimed prize bonds expire.
- Treating Section 156 as an adjustable advance-tax credit instead of final tax.
- Storing prize bonds as undeclared wealth — SBP and FBR data sharing makes large bearer bond holdings increasingly visible.
Related Banking Tax Guides
Useful Tax Tools & Guides
Calculate salary tax separately from prize-bond final-tax income.
Tax SlabsFBR Tax Slabs 2026-27See salary tax slabs separately from Section 156 prize-bond withholding.
NTNApply NTN OnlineRegister free — present ATL status at encashment.
VerifyNTN VerificationConfirm filer status before presenting your bond.
FilingHow to File ReturnReport prize income under the applicable final-tax fields.
SavingsSavings Account TaxCompare Section 151 tax on bank profit with Section 156 tax on prize winnings.
Official Sources
Frequently Asked Questions
What is the prize bond tax for filer and non-filer in Pakistan?
An ATL filer is subject to 15% withholding tax on the prize amount, while a non-ATL person is subject to 30% under Section 156.
What is the tax on prize bond winnings in Pakistan?
Section 156 WHT is 15% for ATL filers and 30% for non-ATL persons under FBR's current withholding rate card.
What is the tax deduction on a Rs. 1,500 prize bond?
The 15% ATL or 30% non-ATL rate is applied to the prize money you win, not to the Rs. 1,500 denomination of the bond.
What is the tax deduction on a Rs. 750 prize bond?
The tax is calculated on the gross prize amount won. An ATL filer is subject to 15% withholding and a non-ATL person to 30%.
Do I declare prize bond winnings in my FBR return?
Keep the gross-prize and deduction evidence and report it in the applicable final-tax fields. Section 156 is not an ordinary adjustable advance-tax credit.
Are Premium Prize Bonds taxed differently?
The same Section 156 ATL/non-ATL rates apply. Registered ownership helps identify the winner, but you should still verify the ATL status and deduction shown at payment.
Can Section 156 prize-bond tax be claimed as an ordinary refund?
Section 156 prize and winning income is subject to final-tax treatment under section 169, so it should not be presented as an ordinary adjustable credit merely because other annual tax is lower.
How long do I have to encash a winning prize bond?
Prize bonds are generally valid for encashment for 6 years from the draw date. Check SBP's current rules at sbp.org.pk for specific denomination validity periods.
Summary
Prize bond winnings in Pakistan are subject to Section 156 WHT — 15% for ATL filers and 30% for non-ATL persons — deducted at encashment on every prize amount. On a large first prize the filer-non-filer difference alone runs to tens of thousands of rupees.
Always present the required identity information at encashment and keep the prize and deduction evidence. Report it using the applicable final-tax treatment rather than claiming it as an ordinary advance-tax credit.