Government Issues Notification on Zakat Deduction Threshold for Bank Accounts

ISLAMABAD: The Ministry of Poverty Alleviation and Social Safety has issued an official notification regarding the deduction of Zakat from bank accounts for the current year.

According to the notification, Zakat will be deducted from eligible bank accounts on the first day of Ramzan. This year, all bank accounts maintaining a balance exceeding Rs503,529 will be subject to Zakat deduction at the prescribed rate.

The ministry stated that Zakat will apply to savings accounts, profit-and-loss sharing accounts, and various types of deposits. However, accounts with balances below the notified threshold will remain exempt from the deduction.

Banks have been directed to deduct the Zakat amount automatically through their systems on the specified date.

Officials said that the annual Zakat deduction at the beginning of Ramzan aims to ensure financial assistance reaches deserving individuals. Citizens have been advised to review their account status in advance and contact their respective banks if they seek Shariah-based exemption from Zakat deduction.