As the tax is deducted on the prize money only and not on the principal amount,
therefore it is not discouraging to the small investors.
It is a requirement of claimant to submit the same to Tax Authorities to prove the
portion of income as legal.
WHT @ 10% is deducted from prize money of Prize Bonds under Section 156(1)
of ITO 2001(Division III of part V). Further, a surcharge @15% on withholding tax on
National Savings Schemes (NSS) profit (including prize money payment on National prize
Bonds) w.e.f. 15.03.2011 to 30.06.2011 has been imposed in terms of FBR letter
No.1(36)WHT/2006 dated 28.03.2011 received vide CDNS letter No.F.13(1)(Rules)Sch-
3/2004 dated 28.03.2011.