National Prize Bonds are issued by government of Pakistan in eight different denominations. On one hand these are a source of domestic borrowing for the government. While on the other hand these provide lucrative returns to the investors in the form of prize money. The details of various prize bonds can be seen here.
If you invest in the national prize bonds issued by the government of Pakistan then you are aware of the excitement and reward that you get after your prize bond is declared as prize winning in a draw. However this excitement is subdued when you go through the process of claiming this prize money.
Conventional Method of Claiming Money from your Prize Bond
For prizes below Rs 20,000/-, you go to the nearest State Bank of Pakistan Banking Services Corporation office, fill the prize bond money claim form, wait for your turn in the line and get the prize money in cash. In most cases you get the tax certificate on the same day and you are done with the process.
However, until recently, it was entirely different process when you won a prize above Rs. 20,000/-. The cumbersome process consisted of almost five steps detailed below.
- You visit the nearest SBP BSC office, fill the prize money claim form including a copy of the prize winning bond, original bond and a copy of your CNIC. You wait in line for your turn and submit you claim at the counter
- Once you submit the claim at the counter, you are issued a receipt. The receipt acknowledges your prize money claim and specifies a date for collecting your prize money payment order. As of now, for prize money below one million the date of receipt of payment order is 20 working days from the receipt of claim and for prize money of one million and above this time is 30 working days.
- On the due date, you go to SBP office and wait in line to get your payment order
- The payment order you get from SBP BSC is to be deposited in your commercial bank account only
- Once the payment has been credited to your account, you go back to SBP to get the tax deduction certificate.
Sounds hectic? Trust me, its much more than this when you actually experience it and have to wait an entire month to get your prize money.
How to Get Prize Money in Directly in Your Bank Account
Going forward with digitization, SBP BSC has introduced the direct credit of prize money to the claimant’s account. The direct credit of prize money significantly reduces the time and number of steps involved in getting your prize money from SBP BSC offices.
The form used to claim the prize bond money has been redesigned by SBP BSC and can be downloaded easily.
The newly designed form has a specified portion for filling particulars such as name, CNIC Number, CNIC expiry date, address, contact number email and specify his tax payer status i.e. if the claimant is a filer or non-filer.
The next major change in the prize bond money claim application form is the selection of mode of payment of prize money.
For prizes up to PKR 18,500/-, you can opt for payment of prize money in cash or direct credit to your bank account (bank credit). If you opt for bank credit, you are issued a receipt at the time of submission of your prize money claim and the money is credited to your bank account on the same day or next working day.
For prizes above PKR 93,000/- and above the claimant can opt for bank credit only and the mode of payment via payment order has been discontinued by SBP BSC.
When you opt for bank credit, you will have to mention your bank name, branch name, account title and IBAN number. Your IBAN number is printed on your new cheque book. You can also use your bank’s IBAN generation tool on the website to find out your IBAN.
Once you have submitted your prize money claim, SBP BSC will process your prize bond and you will get your winnings as per below timeline:
|S.No||Amount of Prize Money||Maximum Timeline|
|Direct Credit (Bank Credit)||Payment Order (discontinued)|
|1.||Below Rs. 1,000,000/-||5 working days from the date of submission of claim||20 working days from the date of submission of claim|
|2.||Above Rs. 1,000,000/-||15 working days from the date of submission of claim||30 working days from the date of submission of claim|
It is evident from the above table that SBP BSC has significantly reduced the time for paying prize money by introducing the method of bank credit and discontinuing the method of payment orders.
Additionally, when you opt for bank credit, you will only have to go to submit the prize money claim. The prize money is credited to your bank account within the specified time. You will save the time hassle of waiting in lines and manual processing.
Additionally, you will be notified via SMS and E-mail regarding your CPR (computerized payment receipt). You can get it from FBR website at your own convenience without going to SBP BSC. If due to some reason, you don’t get the alert, you can collect your CPR/tax deduction certificate from SBP BSC.
Important Points To Keep In Mind
- At the time of submitting the claim form, you must mention your conventional bank account number held in your name. This account cannot be joint. Accounts maintained in Islamic banks, operated jointly, corporate accounts, business accounts and trust accounts are not accepted.
- Your tax payer status i.e. filer or non-filer will be determined by SBP BSC as per latest FBR record.
- The Withholding Tax on prize money amount is deducted at prevailing rates.
- If genuineness of your prize bond is doubtful, it may take a longer time than the one already specified.
- Your prize winning bond will not be returned by SBP BSC and you will be paid the face value of the bond.