Karachi: Officials from the Federal Board of Revenue on Wednesday said that the cash prizes awarded to the Pakistani cricket team on account of their victory in the Champions Trophy 2017 will be subject to 15pc income tax.
Prime Minister Nawaz Sharif had announced a cash reward of Rs10m each to the 15 players and Rs5m each to the thirteen management officials of the cricket team. On June 21st, the PM directed this reward money of Rs215m to be disbursed via a supplementary grant during the current financial year.
As per the official, the cash prizes announced by PM will be subjected to 15pc tax deduction for players/officials who are income tax filers and 20pc for non-filers. He added in case of non-deduction on prizes, and then recipient will be needed to declare the entire amount along with their total income in the annual income and submit a chalan for separate payment of it. Also, the grand total declared through annual income will be subjected to a 30pc tax. Prizes paid in the form of immovable assets like properties or plots are subjected to a separate income tax payment regime.
These cash rewards will be distributed by the Prime Minister to the national team and officials in a ceremony to be held on the 5th of July at the PM house.
