Budget FY26: No tax on Nobel Prize and 8 other awards
Additionally, any award received from a foreign government will also be tax-exempt.
The interim government is set to introduce a provision exempting tax on receiving the Nobel Prize and eight other international awards.
Additionally, any award received from a foreign government will also be tax-exempt, according to the proposed national budget for FY2025-26 unveiled today (2 June).
The eight other awards are: Ramon Magsaysay Award, Booker Prize, Pulitzer Prize, Simon Bolivar Prize, Academy Awards (Oscars), Grammy Awards, Emmy Awards, Golden Globe Awards, and Cannes Film Festival Awards.
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According to the existing income tax law, any income brought into the country as remittance from abroad is tax-free. However, in the case of these international awards, if someone residing in the country receives such an award, the law does not provide clear guidance.
An official from the National Board of Revenue (NBR), speaking on condition of anonymity, earlier told The Business Standard that due to the lack of clear legal provisions, if someone in the country received an international award and brought the prize money into the country, it would be taxed at the regular rate.
However, with the clarification in the new law, the aforementioned awards will now be tax-exempt — even if they are received while residing in the country, said the official.
