Income Tax Ordinance, 2001

CHAPTER-X

PROCEDURE PART V ADVANCE TAX AND DEDUCTION OF TAX AT SOURCE Division III Deduction of Tax at Source

From: 2023-07-01 - To: 0000-00-00 156. Prizes and winnings.- (1) Every person paying 1[prize on] a prize bond, or winnings from a raffle, lottery, 2[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. 3[(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.] 4[(3) The tax 5[deductible] under sub-section (1) or collected under 6[sub-]section (2) shall be final tax on the income from prizes or winnings referred to in the said sub-sections.] ____________________________________________________________________ 1-The words and comma were inserted vide the Finance Ordinance, 2002 (XXVII of 2002 promulgated on 15th June, 2002) 2-The words and commas inserted vide the Finance Act, 2003 (I of 2003 assented on 16th June, 2003) 3-Sub-section (2) substituted vide the Finance Act, 2003 (I of 2003 assented on 16th June, 2003). At the time of substitution sub-section (2) was as under:- “(2) The tax deducted under sub-section (1) shall be a final tax on the income from property.” 4-Sub-section (3) was substituted vide the Finance Ordinance, 2002 (XXVII of 2002 promulgated on 15th June, 2002). At the time of substitution sub-section (3) was as under:- “(3) The tax deducted under sub-section (1) shall be a final tax on the prize bond or winnings.” 5-Substituted for the word “deducted” vide Finance Act, 2012 6-Inserted vide the Finance Act, 2014 From: 2014-07-01 - To: 2023-06-30 156. Prizes and winnings.- (1) Every person paying 1[prize on] a prize bond, or winnings from a raffle, lottery, 2[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. 3[(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.] 4[(3) The tax 5[deductible] under sub-section (1) or collected…