s. 156

Prizes and winnings

Procedure

(1) Every person paying prize on a prize bond, or winnings from a raffle, lottery, prize on winning a quiz, prize offered by companies for promotion of sale, or cross-word puzzle shall deduct tax from the gross amount paid at the rate specified in Division VI of Part III of the First Schedule.
(2) Where a prize, referred to in sub-section (1), is not in cash, the person while giving the prize shall collect tax on the fair market value of the prize.
(3) The tax deductible under sub-section (1) or collected under sub- section (2) shall be final tax on the income from prizes or winnings referred to in the said sub-sections.

Amendment history (13)

The words “local authority” substituted by the Finance Act, 2008.
Inserted by the Finance Act, 2013.
The word “or” omitted by the Finance Act, 2013.
The words “Central Board of Revenue” substituted by the Finance Act, 2007.
Inserted by the Finance Act, 2002.
Inserted by the Finance Act, 2003.
Sub-section (3) substituted by the Finance Act, 2002. The substituted sub-section (3)
The words “deducted” substituted by the Finance Act, 2012.
Inserted by the Finance Act, 2014.
Added by the Finance Act, 2004.
Section 156B omitted through Finance Act, 2020 dated 30 June, 2020 the omitted section read as
Omitted by the Finance Act, 2002. The omitted section 157
Substituted by the Finance Act, 2002. The substituted section 158

Amendment notes captured from the source page(s); they may include changes to neighbouring provisions.

Source FBR PDF page 340

Unofficial reference, compiled from the FBR’s consolidated Income Tax Ordinance 2001 (amended up to 30 June 2026). Provided for general information only — not an official FBR publication and not legal or tax advice. Always verify against the official FBR text before relying on it for filing or any decision.