What is the tax rate on profit earned from a Behbood Savings Certificate?

Question

I am a senior citizen relying on my investment in National Savings and I need to know if the profit I receive every month is exempt from tax or if I have to pay a portion to the government.

Answer 1

If you receive profit on debt after tax deduction at the following rate
1. 15% (For Active Filer)
2. 30% (For Non-Filers) 
Then no further payment of tax is required.

If no withholding tax is deducted on your profit on tax then you are required to pay tax at reduced rate according to following available exemption:
Second Schedule – Part III
[(2[6]) The tax payable under clause (c) of sub-section (1) of section 39, in respect of any amount paid as yield or profit on investment in Bahbood Savings Certificate or Pensioners Benefit Account 3[and Shuhada Family Welfare Account] shall not exceed 4[5%] of such profit.]