The minimum amount in bank accounts for Zakat deduction i.e. Nisab has been set at Rs46,329. This was notified by the Poverty Alleviation and Social Safety Division of the federal Cabinet Secretariat on Monday.
Banks will deduct 2.5% Zakat on the total amount in savings, profit and loss sharing or similar bank accounts having minimum balance equivalent to the Nisab on the first day of Ramadan 2020.
It is likely that the first day of Ramadan will fall either on April 24 or 25th. This will subject to the sighting of the moon, as per the cabinet notification available on the website State Bank of Pakistan (SBP).
The people who are not liable to pay Zakat on their bank accounts are those who have balance lower than the minimum one, those who have submitted the Zakat exemption affidavit or those people and corporations who have current accounts.
The Nisab is Rs1,914 higher from last year’s Ramadan reaching Rs44,415. In accordance with the prices of gold and silver, Nisab is calculated. The money calculated for Zakat is then distributed amongst needy and poor people.
Zakat deducted through bank accounts in three fiscal years 2015-2017 is around Rs17.7 billion.