For 2020, the Federal Government has notified the Nisab of Zakat, which will be deducted from all bank saving accounts at a rate of 2.5 per cent from the above number Rs. 46,329.
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.
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.
