Govt Announces Zakat Deduction Date & Exemption Amount for All Bank Accounts

Federal Government has notified the Nisab of Zakat for 2020, that will be deducted on the amount above Rs. 46,329, at source, from all bank saving accounts at a rate of 2.5%.

According to the notification issued by State Bank of Pakistan (SBP), commercial banks and financial institutions will deduct 2.5 percent on the savings of their depositors or accountholders on Ramadan 1st that will likely fall on April 25.

The Zakat is applied to saving accounts and products maintained by banks, asset management companies and other financial entities. Those customers who have submitted their Zakat exemption certificate will not see a deduction of any amount.


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Whereas, bank customers having current accounts will also be exempted from this deduction.

This year, the minimum amount set on the account of Nisab is higher from the previous year, which was Rs. 44,415, due to the increase in prices of silver in the current year.

Zakat applies on the amount of saving for a holding period of one year which is equal to or above the value of 7.5 tola Gold and 52.5 tola Silver. The benchmark or Nisab is set against the value of the commodity which has a lower value in price, that is, Silver.

Currently, the price of one tola Silver stands at Rs. 950. The Nisab of Zakat is set at the average yearly value of the valuable metal.

Individuals who save their valuables for the period of one year including cash of above 52.5 tola Silver, Rs. 46,329, are liable to pay Zakat to deserving Muslims, according to instructions of Islam.

  • Sheer non-nense!
    Sad that at highest level of authority in our country non-sense prevails.
    The Nisaab of Zakat should be set on Gold’s rate rather than on silver. It should be set to 734,000/-

    For an average sized family in our country 46329/- (based on silver) is hardly able to fulfil the basic commodities’ expenses for 6 months, let alone one should be paying Zakat on this meagre amount!

    May we get rid of such jahil mullahs impacting our national policies and decision making!

  • Asalam o Alaikum. Kindly let me know that can i submit copy of CZ-50 declaration form one or tow days before Ramazan to my bank.

    • No, You can’t. Bank will not entertain you regarding this now. You should have submitted it at least 2-3 months ago.

  • What about Christians ? Is it compulsory for them to submit deceleration of zakat deduction ?

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