The Federal Ministry of Poverty Alleviation and Social Security has announced that if an individual’s bank account contains Rs. 179,689 or more on the first day of Ramadan, zakat will be deducted accordingly.
According to the ministry, this deduction will apply to certain types of accounts, including savings accounts, profit and loss accounts, and other zakat-eligible accounts. However, current accounts are exempt from this deduction, meaning that funds held in current accounts will not be subject to Zakat. Zakat deduction will take place on either March 1 or March 2, in accordance with the first day of Ramadan.
Individuals who do not wish to have Zakat deducted from their accounts must submit a “Declaration Form” to their bank in advance. By doing so, they can legally exempt their account from Zakat deductions.
This ruling has been applied under the Zakat and Ushr Ordinance 1980, which apparently states that if an individual’s account balance falls below the specified threshold on the 1st of Ramadan, Zakat will not be valid. To avoid unexpected deductions, individuals are advised to review their financial status prior to the start of Ramadan.
