The federal government has announced the Nisab, the minimum amount in bank accounts for zakat deduction, at Rs103,000.
Banks will deduct 2.5% zakat on the total amount in savings, profit and loss sharing, or similar bank accounts having a minimum balance equivalent to Nisab on the first day of the fasting month of Ramazan 2023, likely to fall on March 23.
However, those who have an account balance lower than Nisab or those who have submitted a zakat exemption affidavit are exempted from paying zakat on their bank accounts.
Additionally, individuals and corporations maintaining current accounts are not liable to pay zakat.
The Nisab has increased by Rs14,073 from the previous year, calculated according to the prices of gold and silver.
The collected amount on account of zakat is distributed among the needy and poor patients in hospitals across the country.
