Premium Prize Bonds in Pakistan
Premium prize bonds in Pakistan, administered by the Central Directorate of National Savings (CDNS), present a distinct investment opportunity compared to traditional bearer prize bonds. Here’s an overview of their key characteristics:
- Registered Ownership: Premium prize bonds are registered in the investor’s name, offering a higher level of security compared to bearer bonds. This reduces the risk of loss or theft.
- Dual Benefit: Investors enjoy a dual benefit with premium prize bonds. They earn a floating profit every six months at a rate determined by the government. Additionally, they stand a chance to win prizes in quarterly draws.
- Investment Amount: These bonds are available in denominations of Rs. 25,000 and Rs. 40,000. There’s potential for additional denominations to be introduced in the future.
- Profit and Prize Money Payout: Profit accrued on premium prize bonds is directly credited to the investor’s registered bank account every six months. Similarly, if the bond number is selected in the draws, the prize money is deposited into the account as well.
- Taxation: While withholding tax (WHT) is applicable on earnings from premium prize bonds, they are exempt from Zakat, an Islamic religious tax. This makes them a potentially attractive option for investors seeking tax-efficient investments.
Prize money and the number of prizes on Premium Prize bonds
Here’s the breakdown of prize money and the number of prizes for the currently available Rs. 40,000 and Rs. 25,000 Premium Prize Bonds in Pakistan:
For Rs. 40,000 Premium Prize Bond:
- Top Prize: One prize of Rs. 80,000,000 (eighty million rupees).
- Second Tier: Three prizes of Rs. 30,000,000 (thirty million rupees) each.
- Third Tier: 660 winners receive Rs. 500,000 (five hundred thousand rupees) each.
For Rs. 25,000 Premium Prize Bond:
- Top Prize: One prize of Rs. 30,000,000 (thirty million rupees).
- Second Tier: Five prizes of Rs. 10,000,000 (ten million rupees) each.
- Third Tier: 707 winners receive Rs. 300,000 (three hundred thousand rupees) each.
Amount after Tax
Below are the updated tables, including the amount after tax deduction, separated for filers and non-filers:
For Filers (15% Tax):
For Rs. 40,000 Premium Prize Bond:
| Prize Tier | Prize Amount (PKR) | Tax Deduction (15%) | Amount After Tax (PKR) |
|---|---|---|---|
| Top Prize | 80,000,000 | 12,000,000 | 68,000,000 |
| Second Tier | 30,000,000 | 4,500,000 | 25,500,000 |
| Third Tier | 500,000 | 75,000 | 425,000 |
For Rs. 25,000 Premium Prize Bond:
| Prize Tier | Prize Amount (PKR) | Tax Deduction (15%) | Amount After Tax (PKR) |
|---|---|---|---|
| Top Prize | 30,000,000 | 4,500,000 | 25,500,000 |
| Second Tier | 10,000,000 | 1,500,000 | 8,500,000 |
| Third Tier | 300,000 | 45,000 | 255,000 |
For Non-Filers (30% Tax):
For Rs. 40,000 Premium Prize Bond:
| Prize Tier | Prize Amount (PKR) | Tax Deduction (30%) | Amount After Tax (PKR) |
|---|---|---|---|
| Top Prize | 80,000,000 | 24,000,000 | 56,000,000 |
| Second Tier | 30,000,000 | 9,000,000 | 21,000,000 |
| Third Tier | 500,000 | 150,000 | 350,000 |
For Rs. 25,000 Premium Prize Bond:
| Prize Tier | Prize Amount (PKR) | Tax Deduction (30%) | Amount After Tax (PKR) |
|---|---|---|---|
| Top Prize | 30,000,000 | 9,000,000 | 21,000,000 |
| Second Tier | 10,000,000 | 3,000,000 | 7,000,000 |
| Third Tier | 300,000 | 90,000 | 210,000 |
These tables provide a clear breakdown of the prize money after tax deductions for both filers and non-filers, categorized by the prize tiers for Rs. 40,000 and Rs. 25,000 Premium Prize Bonds in Pakistan.
For further information on premium prize bonds, interested individuals can refer to the resources below:
These prize structures highlight the potential rewards for investors holding premium prize bonds in Pakistan. For more information and updates, you can visit the State Bank of Pakistan’s Prize Bond section.
Here are some resources for further information:
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- Premium Prize Bonds (Registered) Scheme, State Bank of Pakistan [FAQ section]: Click Here
- Banks authorized to sell Premium Prize Bonds: Click Here
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