The Federal Government has informed Zakat’s Nisab for 2020, which will be deducted from all bank saving accounts at a rate of 2.5 percent from the total above Rs. 46,329 at the source.
According to the notification released by the State Bank of Pakistan (SBP), commercial banks and financial institutions would subtract 2.5 percent from the deposits on Ramadan 1 of their depositors or accounts, which is expected to fall on April 25.
The Zakat is extended to save banks, wealth management firms, and other financial institutions holding accounts and goods. Many customers who have submitted their Zakat exemption certificate won’t see any amount deducted.
In comparison, bank clients with current accounts will also be exempted from this deduction.
This year, because of the rise in silver prices in the current year, the minimum amount set on Nisab’s account is higher than in the previous year, which was Rs. 44,415,
Zakat transfers the savings for a holding period of one year equal to or above the amount of 7.5 tola Gold and 52.5 tola Silver, respectively. The benchmark or Nisab is set against the product value which has a lower price value, that is to say, Silver.
The price of one Silver tola currently stands at Rs. 950. Zakat’s Nisab is set at the value of the valuable metal on average each year.
Individuals who save their valuables for a period of one year like cash above 52.5 tola Silver, Rs. 46,329, are liable to pay Zakat to Muslims who merit it, according to Islamic instructions.