How to buy digital prize bonds using the new mobile app?

The federal government has taken a major step towards modernization by introducing digital prize bonds and releasing the Digital Prize Bonds Registered Rules draft. The Ministry of Finance has invited feedback from stakeholders and the public on this new system.

Digital Prize Bond Transactions via Mobile App

According to a notification from the Ministry of Finance, digital prize bond transactions will be conducted through a mobile application. This initiative aims to simplify the investment process and enhance transparency.

Key Features of Digital Prize Bonds

The government has outlined several important features of digital prize bonds:

• Taxation on Prize Money: The prize money will be subject to income tax deductions.
• No Zakat Deduction: Unlike other financial instruments, Zakat will not be applicable.
• Unlimited Investment: Investors can purchase an unlimited number of bonds.
• Eligibility: All adult Pakistani citizens can invest in digital prize bonds.
• Non-Transferable Bonds: Ownership of the bonds cannot be transferred or pledged.

Inheritance Rules for Digital Prize Bonds

In case of an investor’s death, the bond amount will be paid to the legal heirs based on a succession certificate. This ensures a smooth and fair transfer of funds.

Tax Deduction on Prize Money

As per Section 156 of the Income Tax Ordinance 2001, the following withholding tax rates will apply to prize money:

• 15% tax for filers (active taxpayers).
• 30% tax for non-filers (inactive taxpayers).

The introduction of digital prize bonds represents a significant shift towards a digital and efficient investment system. With transactions managed through a mobile app, the process will be more secure and accessible. Investors are encouraged to review the draft rules and submit their feedback before final implementation.

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