The Federal Board of Revenue (FBR) on Saturday clarified reports about deduction of tax from the cash prizes being announced by the government and individuals for Olympics gold medal winner Arshad Nadeem.
Reports suggested that Arshad is a grade 18 officer of Wapda and he files his tax return annually. Hence, 20 percent tax will be deducted from the cash prizes he will receive from different quarters under Section 156 of the Income Tax Act. Also, reports suggested that Arshad will be receiving Rs300 million in cash prizes and Rs60 million tax will be deducted from this amount.
However, the FBR has categorically denied the reports that any tax will be deducted from the cash prizes received by Arshad.
FBR spokesperson Bakhtyar Muhammad has said that no tax will be deducted from the cash prizes given to Arshad Nadeem. He said that income tax or withholding tax does not apply to the cash prizes being awarded to the Olympic javelin thrower. He said there is no mention of tax deduction from the cash prizes awarded to Olympic medal winners. He said that Arshad Nadeem is a national hero and the FBR would facilitate him in every possible way.
