Zakat Will Be Deducted From Your Account On How Much Balance? Find Out

The Federal Ministry of Poverty Alleviation and Social Safety has announced that if an individual’s bank account holds Rs. 179,689 or more on the 1st of Ramadan, Zakat will be deducted accordingly.

According to the ministry, this deduction will apply to specific 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. The Zakat deduction will take place on either March 1 or March 2, in line with the first day of Ramadan.

Individuals who do not wish to have Zakat subtracted from their accounts must submit a “Declaration Form” to their bank in advance. By doing so, they can lawfully exempt their account from Zakat deductions.

This verdict has been applied under the Zakat and Ushr Ordinance 1980, which evidently states that if an individual’s account balance falls under the specified threshold on the 1st of Ramadan, Zakat will not be valid. To avoid any unexpected deductions, individuals are advised to review their financial status before Ramadan begins.