Nisab set at Rs88,927 for Zakat deduction

Banks will deduct 2.5% on total amount in savings, profit and loss sharing accounts

KARACHI:

The Poverty Alleviation and Social Safety Division of the federal cabinet secretariat on Wednesday notified Nisab – minimum amount in bank accounts for zakat deduction – at Rs88,927.

Banks would deduct 2.5% zakat on the total amount in savings, profit and loss sharing or similar bank accounts having minimum balance equivalent to Nisab on the first day of the fasting month of Ramazan 2022.

The first day of Ramazan is likely to fall on April 3 or 4, subject to the sighting of the moon, according to the cabinet notification available on the State Bank of Pakistan’s (SBP) website. People who have the account balance lower than Nisab or those who have submitted the zakat exemption affidavit are not liable to pay zakat on their bank accounts.

Moreover, those people and corporations who are maintaining current accounts are also not liable to pay zakat on their accounts. Nisab is higher by Rs7,994 this year from Rs80,933 announced in the previous Ramazan – in April 2021.

Nisab is calculated in accordance with prices of gold and silver. The amount collected on account of zakat is distributed among the needy and poor patients in hospitals of the country.

Published in The Express Tribune, March 31^st, 2022.

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