The government of Pakistan has announced that the people have been given another six months to either cash or convert their prize bonds of Rs40,000 denomination.
Back in June 2019, the government had announced to discontinue the Rs40,000 standard prize bond. As per the details, the purpose behind this decision was that it is the favorite tool for the evaders to launder their dirty money.
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It is pertinent to mention here that usually, these bonds are traded multiple time (it changes too many owners) before they are cashed.
Since the bonds are not registered in the name of the bearer, it is very difficult to trace them. So that the government of Pakistan decided to discontinue Rs40,000 prize bonds to tighten the noose around the tax evaders.
The first deadline announced by the government to either cash or convert these prize bonds was March 31, which was later extended by the Finance Division till June 30. Now the government of Pakistan had extended the deadline for the second time till December 31, 2020.
It is pertinent to mention here that the Rs40,000 prize bond is the most expensive of the eight denominations the government of Pakistan offers — Rs100 being the cheapest.