New Tax Rules on Prize Bonds and Loan Profits Announced
The government has introduced new tax rules on earnings from prize bonds and interest gained through National Savings Schemes. These rules impose a heavier tax burden on people who haven’t filed their tax returns, while registered filers will pay less.
Moreover, this step is aimed at encouraging more citizens to become active taxpayers. Non-filers will face significantly higher deduction rates compared to those on the Active Taxpayers List (ATL). The changes apply to all prize bond winnings and profits from savings accounts under the scheme. This move highlights the government’s focus on increasing tax collection through Prize Bonds.
People who are part of the FBR’s Active Taxpayers List (ATL) must now pay a 15% tax on any prize bond amounts they win, as per the revised tax rules. This change is part of the government’s efforts to increase tax collection and encourage more people to file their tax returns.
For those not included in the ATL, the tax rate is even higher, making it costly to remain a non-filer. The new rules apply to all types of prize bond winnings, regardless of the amount. It is important for investors to check their tax status to avoid paying higher rates. These steps are aimed at promoting tax compliance and bringing more citizens into the tax net. Investors should remain aware of these changes if they are participating in Prize Bonds.
A higher tax of 30% will be taken from non-filers, making it twice the amount compared to what registered taxpayers are required to pay. This step has been introduced to push more people to file their tax returns.
It is part of the government’s plan to widen the tax base and increase revenue. Non-filers will now find it more costly to stay outside the tax system. These new rules apply to all prize bond winnings and profits from National Savings Schemes. Taxpayers can benefit by staying compliant while investing in Prize Bonds.
Profits made from debt or loan interest are also included under Section 151. Those who are registered taxpayers will see a 15% tax on these earnings, while non-filers will once again face a much steeper rate of 30%. This measure has been introduced to bring more fairness to the tax system. It also encourages individuals to file their tax returns and avoid paying higher rates. The revised rules bring added clarity for those earning from Prize Bonds and similar schemes.
Money Earned from Loans Over Rs. 5 Million
Any profit from debts or loans higher than Rs. 5 million in a year will be counted as part of your yearly income. It will then be taxed under regular business tax rates. A 45% tax is charged if the profit is over Rs. 5.6 million, and 40% if it’s below that level. This move is part of the government’s effort to bring high-income earners into the tax net. It aims to create fairness by applying higher taxes on larger profits.
People earning below the threshold will not see any change in their tax rates. These changes mainly target individuals and businesses making significant gains from debt or loan interest. The new rules will apply from the current tax year onwards. Small investors in Prize Bonds are unlikely to be affected by these changes.
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