Winning a prize bond in Pakistan can be exciting, but the amount announced in the draw is not necessarily the amount you receive. Before the prize money is paid, withholding tax is deducted according to the applicable tax rules.
Prize Bond Tax in Pakistan for 2026–27 is generally 15% for taxpayers appearing on the FBR Active Taxpayers’ List (ATL) and 30% for non-ATL taxpayers.
This tax is deducted under Section 156 of the Income Tax Ordinance, 2001.
For example, if you win a prize of Rs. 1,000,000, an ATL taxpayer generally receives Rs. 850,000 after tax, while a non-ATL taxpayer receives Rs. 700,000.
This guide explains the applicable prize bond tax rates, net prize calculations, filer versus non-filer differences, the tax treatment under Section 156, prize claim procedures, required documents and rules for Premium Prize Bonds.
Table of Contents
What Is Prize Bond Tax in Pakistan?
Prize bond tax is the federal income tax deducted from the prize money awarded to a winning prize bond holder.
Under Section 156, the person or institution paying the prize is responsible for deducting the applicable tax before making payment.
The tax is calculated on the gross prize amount, not on the face value of the prize bond.
For example, if a Rs. 1,500 prize bond wins Rs. 18,500, the applicable withholding tax is calculated on the Rs. 18,500 prize—not on the original Rs. 1,500 investment.
The governing legislation is the Income Tax Ordinance, 2001, while the applicable withholding tax rates are published through the FBR Withholding Tax Rate Cards.
Prize Bond Tax Rates in Pakistan 2026–27
For Tax Year 2027, the applicable withholding tax rates on prize bond winnings are:
| Taxpayer Status | Tax Rate | Net Prize Received |
|---|---|---|
| Active Taxpayer (ATL / Filer) | 15% | 85% |
| Non-Active Taxpayer (Non-ATL / Non-Filer) | 30% | 70% |
These rates apply to the gross amount of prize money.
The tax is normally deducted at source before the winner receives payment.
How Much Tax Is Deducted From Prize Bond Winnings?
The calculation is straightforward:
Prize Bond Tax = Gross Prize Amount × Applicable Tax Rate
Net Prize Money = Gross Prize Amount − Prize Bond Tax
For an ATL taxpayer:
Net Prize Money = Gross Prize Amount × 85%
For a non-ATL taxpayer:
Net Prize Money = Gross Prize Amount × 70%
The difference between the two categories can be substantial, especially for large prizes.
Prize Bond Tax Calculator – Filer vs Non-Filer Examples
The following examples show how much tax is deducted from different prize amounts.
| Gross Prize | Filer Tax (15%) | Filer Receives | Non-Filer Tax (30%) | Non-Filer Receives |
|---|---|---|---|---|
| Rs. 10,000 | Rs. 1,500 | Rs. 8,500 | Rs. 3,000 | Rs. 7,000 |
| Rs. 50,000 | Rs. 7,500 | Rs. 42,500 | Rs. 15,000 | Rs. 35,000 |
| 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. 5,000,000 | Rs. 750,000 | Rs. 4,250,000 | Rs. 1,500,000 | Rs. 3,500,000 |
These calculations assume that the stated rates apply when the prize is paid.
Example 1: Tax on Rs. 100,000 Prize Bond Winnings
Suppose you win Rs. 100,000.
If you are on the ATL:
- Gross prize: Rs. 100,000
- Tax rate: 15%
- Tax deducted: Rs. 15,000
- Net prize received: Rs. 85,000
If you are not on the ATL:
- Gross prize: Rs. 100,000
- Tax rate: 30%
- Tax deducted: Rs. 30,000
- Net prize received: Rs. 70,000
An ATL taxpayer receives Rs. 15,000 more from the same prize.
Example 2: Tax on Rs. 1 Million Prize Bond Winnings
Suppose your prize bond wins Rs. 1,000,000.
| Description | ATL Taxpayer | Non-ATL Taxpayer |
|---|---|---|
| Gross prize | Rs. 1,000,000 | Rs. 1,000,000 |
| Withholding tax | Rs. 150,000 | Rs. 300,000 |
| Net payment | Rs. 850,000 | Rs. 700,000 |
Difference in net payment: Rs. 150,000
This example demonstrates why checking ATL status before claiming a prize can be financially important.
Section 156 – Tax on Prize Bonds and Other Winnings
Section 156 of the Income Tax Ordinance, 2001 deals with tax deduction from specified prizes and winnings.
It covers prize bond winnings and certain other categories, including lotteries, raffles, quizzes and promotional prizes.
Under this provision:
- The person making the payment deducts tax from the gross prize amount.
- The applicable rate depends on the category of prize and the taxpayer’s relevant status.
- Tax is deducted when the prize money is paid.
- Special rules apply when a prize is awarded in kind rather than in cash.
- The tax deducted or collected under Section 156 is treated as final tax on the income covered by that provision.
Is Prize Bond Tax Adjustable or Final?
Prize bond withholding tax under Section 156 is treated as final tax on the relevant prize income.
This is different from many adjustable withholding taxes, such as certain advance taxes collected on vehicle transactions.
For example, if an ATL taxpayer wins Rs. 1,000,000 and Rs. 150,000 is correctly deducted under Section 156, that deduction generally represents the final income tax on the prize.
It should not automatically be treated as an adjustable advance-tax credit against unrelated salary or business income.
Any reporting obligation or correction of an incorrect deduction must be considered separately under the applicable tax rules.
For a broader explanation of tax deduction at source, read Withholding Tax in Pakistan – Complete Guide.
Filer vs Non-Filer Prize Bond Tax – Why ATL Status Matters
A taxpayer’s status on FBR’s Active Taxpayers’ List determines which withholding tax rate generally applies to prize bond winnings.
The difference is significant:
- ATL taxpayer: 15% withholding tax.
- Non-ATL taxpayer: 30% withholding tax.
For example, on a Rs. 500,000 prize:
- An ATL taxpayer receives Rs. 425,000.
- A non-ATL taxpayer receives Rs. 350,000.
The ATL taxpayer receives Rs. 75,000 more.
Does Having an NTN Make You a Filer?
No. Merely obtaining an NTN or registering with FBR does not necessarily mean your name appears on the current ATL.
The relevant tax return filing and ATL requirements must be satisfied.
Taxpayers should check their status through the official FBR Active Taxpayers’ List before claiming a prize.
For detailed guidance, see Active Taxpayer vs Non-Active Taxpayer in Pakistan.
Can You Become a Filer Before Claiming a Prize?
A person who is not currently on the ATL may be able to regularize their tax filing position and qualify for ATL inclusion, subject to the applicable requirements.
However, filing a return does not guarantee that a particular tax rate will automatically apply to a prize already paid.
The relevant withholding treatment depends on the law and the taxpayer’s status at the applicable time.
If you have won a significant prize, verify your ATL status and the payment requirements before submitting your claim.
How to Check Prize Bond Draw Results in Pakistan
The Central Directorate of National Savings publishes prize bond draw schedules and winning numbers.
To check your result:
- Visit the official National Savings Prize Bonds page.
- Select the relevant prize bond denomination.
- Open the draw results for the relevant date.
- Compare the winning numbers with the number printed on your bond.
- Confirm the denomination and draw details before beginning the claim process.
You can also access the National Savings Prize Bond Draw Results page.
Always use official draw results rather than relying only on social media posts or unofficial prize bond checking websites.
How to Claim Prize Bond Money in Pakistan
The claim procedure depends on the prize amount and whether you hold an ordinary bearer prize bond or a registered Premium Prize Bond.
For an ordinary prize bond, the winner must submit the prescribed claim form and supporting documents through an authorized payment office.
Step-by-Step Prize Bond Claim Procedure
Step 1: Confirm the Winning Number
Check the winning number against the official draw list issued for your bond denomination.
Step 2: Obtain the Official Claim Form
Download the applicable prize claim form from the National Savings Public Forms page or obtain it from the authorized office.
Step 3: Prepare the Required Documents
Complete the form and prepare the original winning bond and identity documents.
Step 4: Visit the Authorized Payment Office
Submit the claim to the appropriate National Savings, authorized bank or State Bank of Pakistan office, depending on the prize amount and applicable claim rules.
Step 5: Complete Verification
The payment office verifies the bond, claimant’s identity and claim details.
Step 6: Receive the Net Prize Money
After approval, the applicable withholding tax is deducted and the remaining prize amount is paid through the authorized process.
Where Can You Claim Prize Bond Money?
The authorized payment office and prescribed claim form depend on the prize amount and the applicable National Savings and State Bank of Pakistan procedures.
National Savings FAQs state that certain smaller prizes may be claimed through National Savings Centres, authorized scheduled banks or State Bank of Pakistan branches, while higher-value claims are handled through State Bank of Pakistan branches.
Different prescribed claim forms are available for different prize amounts and payment offices.
Before submitting a claim, check the latest instructions on the National Savings FAQs and download the appropriate form from the National Savings Public Forms page.
Documents Required to Claim Prize Bond Winnings
For an ordinary prize bond claim, the generally required documents include:
- Completed prescribed prize claim form.
- Original winning prize bond.
- Photocopy of a valid CNIC.
- Photocopy of the winning bond, signed on the reverse by the claimant.
- Any additional verification documents required by the authorized payment office.
The claimant should ensure that the bond number, denomination and personal information are accurate.
The official prize claim form itself is provided without a fee.
Additional documentation may be required for exceptional cases, such as damaged bonds, claims involving legal representatives or other special circumstances.
What Is the Time Limit for Claiming Prize Bond Money?
National Savings states that the maximum period for claiming a prize is six years from the date of the relevant draw.
A claim can generally be submitted after approximately three or four working days following the draw.
Example of the Six-Year Claim Period
Suppose a prize bond wins in a draw held on 15 March 2026.
The ordinary six-year claim period would run until the corresponding date in March 2032, subject to the applicable claim rules.
Waiting too long can result in the loss of the opportunity to claim the prize.
For this reason, winners should verify the draw result and begin the claim process without unnecessary delay.
Ordinary Prize Bonds vs Premium Prize Bonds
Pakistan offers ordinary bearer prize bonds and registered Premium Prize Bonds.
Although both can provide prize winnings, their ownership and payment arrangements differ.
| Feature | Ordinary Prize Bonds | Premium Prize Bonds |
|---|---|---|
| Ownership | Bearer instrument | Registered in investor’s name |
| Prize draws | According to denomination schedule | Quarterly draws |
| Regular profit | No regular profit | Biannual profit |
| Prize claim | Prescribed claim process | Direct bank-account credit |
| Withholding tax on prizes | Applicable | Applicable |
| Withholding tax on regular profit | Not applicable to ordinary bonds without profit | Applicable under relevant rules |
Premium Prize Bond Tax in Pakistan
Premium Prize Bonds are registered investment instruments offered in denominations of Rs. 25,000 and Rs. 40,000.
They provide:
- Quarterly prize draws.
- Biannual profit payments.
- Registration in the investor’s name.
- Direct credit of prize money and profit to the investor’s bank account.
Withholding tax applies to both prize money and periodic profit, but these are distinct categories of income and should not automatically be treated as identical for every tax purpose.
For prize winnings, National Savings publishes 15% withholding tax for ATL taxpayers and 30% for non-ATL taxpayers.
The applicable tax on periodic profit should be checked under the relevant statutory provision and current rate schedule.
For product features and payment arrangements, consult the official National Savings Premium Prize Bond Guide.
Do Premium Prize Bond Winners Need to Submit a Claim Form?
Normally, no.
Unlike ordinary bearer prize bonds, registered Premium Prize Bonds provide for direct credit of prize money and profit into the registered investor’s bank account.
The investor’s registration and banking information must therefore remain accurate and up to date.
Tax is deducted according to the applicable withholding provisions before the relevant net amount is credited.
Is Prize Bond Tax Different From Lottery and Raffle Tax?
Yes. Section 156 covers prize bonds and certain other prizes or winnings, including lotteries, raffles, quizzes, crossword puzzles and promotional prizes.
However, the applicable withholding tax rate depends on the statutory category of the prize or winning.
The 15% ATL and 30% non-ATL rates discussed in this guide specifically relate to prize bond winnings.
For a lottery, raffle, promotional reward or non-cash prize, taxpayers should check the relevant rate in the current FBR Withholding Tax Rate Card before calculating the tax.
Where a prize is awarded in kind rather than cash, special collection and valuation provisions may apply.
Do You Need to Declare Prize Bond Winnings in Your FBR Tax Return?
Prize bond winnings may need to be reflected in the relevant tax return and financial records, depending on the taxpayer’s circumstances and the applicable return requirements.
Although Section 156 withholding tax is treated as final tax on the relevant prize income, that does not automatically eliminate every reporting obligation.
Taxpayers should retain:
- The winning bond details.
- Official prize claim or payment documents.
- Evidence of tax deducted.
- Bank statements showing receipt of prize money.
- Relevant records supporting the source and use of funds.
If the prize money is deposited into a bank account, used to purchase an asset or retained as cash, it may also affect the taxpayer’s Wealth Statement.
For example, a taxpayer who receives Rs. 850,000 after tax from a Rs. 1,000,000 prize should maintain records explaining the gross prize, Rs. 150,000 tax deduction and net funds received.
Proper documentation helps reconcile changes in bank balances, cash holdings and other assets.
If your Wealth Statement does not balance, read FBR Wealth Statement Not Reconciling – Causes and Solutions.
Can Prize Bond Tax Be Refunded?
Section 156 tax on prize bond winnings is generally treated as final tax on that income.
Therefore, correctly deducted prize bond tax is not ordinarily an adjustable advance-tax payment that can be reclaimed merely because the winner’s other taxable income is low.
However, an incorrect deduction, duplicate deduction or other payment error may require separate review under the applicable law and administrative procedures.
Taxpayers should preserve the original payment documents and seek clarification from the relevant paying institution or FBR when a deduction appears incorrect.
A refund should not be assumed without establishing a valid legal basis.
Common Mistakes When Claiming Prize Bond Winnings
1. Assuming the Full Prize Will Be Paid
The announced prize amount is the gross amount.
The applicable withholding tax is deducted before payment.
2. Confusing NTN Registration With ATL Status
Having an NTN does not necessarily mean the person is currently appearing on the ATL.
Always check the relevant status.
3. Missing the Six-Year Claim Deadline
Prize claims are subject to a time limit.
National Savings states that the claim must be lodged within six years from the relevant draw date.
4. Using an Unofficial Draw Result
A social media post or unofficial website may contain errors.
Verify the result against the official National Savings draw list.
5. Losing the Original Winning Bond
For ordinary bearer prize bonds, the original winning instrument is an important part of the claim documentation.
Keep it secure.
6. Treating Prize Bond Tax as Automatically Adjustable
Tax deducted under Section 156 is generally final tax on the relevant prize income.
It should not be confused with adjustable withholding tax collected under other provisions.
7. Ignoring Financial Recordkeeping
Large prize winnings can affect bank balances, cash holdings and asset purchases.
Keep the documents needed to explain these transactions in your tax records.
Frequently Asked Questions
What is the prize bond tax rate in Pakistan in 2026–27?
The withholding tax rate on prize bond winnings is generally 15% for taxpayers appearing on the FBR Active Taxpayers’ List and 30% for non-ATL taxpayers.
How much tax is deducted from a Rs. 1 million prize bond prize?
An ATL taxpayer generally pays Rs. 150,000 in withholding tax and receives Rs. 850,000. A non-ATL taxpayer generally pays Rs. 300,000 and receives Rs. 700,000.
Is prize bond tax deducted automatically?
Yes. The institution paying the prize generally deducts the applicable tax before making payment.
Which section of the Income Tax Ordinance applies to prize bond winnings?
Section 156 governs withholding tax on prize bond winnings and other specified prizes.
Is prize bond withholding tax adjustable?
Tax deducted under Section 156 is generally final tax on the relevant prize income rather than an adjustable advance-tax credit.
Can a non-filer claim prize bond winnings?
Yes, subject to the applicable claim and identity-verification requirements. However, a person not appearing on the ATL generally faces a higher withholding tax rate.
How can I check my filer status before claiming a prize?
Check your status through FBR’s official Active Taxpayers’ List facilities before submitting the claim.
How many years do I have to claim a winning prize bond?
National Savings states that the maximum claim period is six years from the date of the relevant draw.
Can I claim a prize bond prize without the original bond?
For an ordinary bearer prize bond, the original winning bond is generally required. Special situations must be handled under the applicable claim rules.
Is tax applicable to Premium Prize Bonds?
Yes. Withholding tax applies to Premium Prize Bond prize money and periodic profit under the relevant provisions.
Are Premium Prize Bond prizes paid automatically?
Registered Premium Prize Bonds provide for direct credit of prize money to the investor’s bank account, subject to the applicable requirements.
Where can I download a prize bond claim form?
The prescribed claim forms are available from the official National Savings website under Public Forms.
Conclusion
Prize Bond Tax in Pakistan for 2026–27 is an important consideration for every prize bond winner.
Under Section 156 of the Income Tax Ordinance, 2001, the applicable withholding tax on prize bond winnings is generally 15% for ATL taxpayers and 30% for non-ATL taxpayers.
The difference can be significant. On a Rs. 1,000,000 prize, an ATL taxpayer receives Rs. 150,000 more than a non-ATL taxpayer.
Before claiming a prize, verify the winning number using official National Savings results, check your ATL status, prepare the required documents and submit the claim within the prescribed period.
For large prizes, retain the payment and tax deduction records so that the amount received can be properly documented in your income tax and financial records.
Official Sources
- FBR – Income Tax Ordinance, 2001
- FBR – Withholding Tax Rate Cards
- FBR – Active Taxpayers’ List
- National Savings – Prize Bonds
- National Savings – Prize Bond FAQs
- National Savings – Prize Bond Draw Results
- National Savings – Prize Claim Forms
- National Savings – Premium Prize Bonds
- State Bank of Pakistan – Prize Bond Information
