Do I need to file a return for prize bond winnings in Pakistan?

Question

I won money from a prize bond draw. Should I declare this income in my annual return, and is it subject to any tax even though tax was already deducted at source?

Answer 1

Yes, you should declare your prize bond winnings in your annual income tax return. The tax that was deducted at the source is considered a "final tax." This means that you don't have to pay any additional tax on that income, and the withholding tax is not adjustable against your other tax liabilities. However, you are required to declare it in your return to show that the income was legally earned and that the appropriate tax has been paid.