State Bank of Pakistan (SBP) has announced that the federal government has set the ‘Nisab for Zakat’ at Rs 46,329.
According to a notification, “No deduction of Zakat at source shall be made in case the amount standing to the credit of an account is less than Rs46,329 on the first day of Ramzan ul Mubarak.”
The statement said, “First day of Ramzan has already been notified as to the deduction date likely to fall on April 24 or 25, 2020 (subject to appearance of the moon).”
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.
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.
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.
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