Prize Bond Tax Calculator Pakistan 2026 (Lottery Winnings)

Tax on prize bonds and lottery winnings

Winnings are taxed at source under Section 156. The prize bond office, lottery operator or company deducts tax before paying you. Prize bond and crossword prizes are taxed at a lower rate than raffles, lotteries, quizzes and sale-promotion prizes, and non-filers pay double in both cases.

Section 156 rates, Tax Year 2027

Example

A filer wins Rs 750,000 on a prize bond and receives Rs 637,500 after 15% tax of Rs 112,500. A non-filer pays 30%, or Rs 225,000.

How to use the prize bond tax calculator

Enter the prize amount, pick whether it is a prize bond or crossword prize or a raffle, lottery, quiz or promotion prize, and choose your filer status. The prize bond tax calculator shows the Section 156 tax and what you receive after deduction.

• Prize bond winnings are taxed at a lower rate than lottery and raffle prizes.
• If you are not on the ATL the rate doubles.
• Always collect the tax deduction certificate when you claim a prize.

If you hold prize bonds, filing a tax return and getting on the ATL before you claim a big prize can save you a large amount.

Frequently Asked Questions

How much tax is deducted on a prize bond in Pakistan?

The Section 156 rate on prize bond and crossword prizes is 15% for filers and 30% for non-filers.

What is the tax on a lottery or raffle win?

Raffle, lottery, quiz and company sale-promotion prizes are taxed at 20% for filers and 40% for non-filers.

Is the tax final?

Withholding on prizes is generally treated as a final tax on that income.

Does being a filer reduce the tax?

Yes. Non-filers pay twice the filer rate.