How to get Zakat deduction exemption from bank?

In Pakistan, banks are required to deduct Zakat from savings accounts, profit-and-loss-sharing accounts, and similar accounts if the balance reaches or exceeds PKR 179,689 on the first day of Ramadan. 

If an account holder’s balance surpasses this threshold, known as Nisab, the bank will deduct 2.5% of the excess amount in accordance with Islamic financial regulations. However, individuals who prefer to distribute their Zakat personally can opt out of this automatic deduction by filing for an exemption.

Banks are not permitted to deduct Zakat under the following circumstances:

1. Non-Muslim Account Holders – If the account holder is non-Muslim and has provided a written affirmation to the bank.
2. Non-Pakistani Citizens – If the account holder is a foreign national and has submitted a photocopy of their passport or an equivalent document verifying their nationality.
3. Corporate Accounts – If an account belongs to a company where at least 50% of the shares are held by non-Muslims or non-Pakistanis, provided the company submits the required attested documentation.
4. Faith-Based Exemption – If an individual claims exemption based on religious beliefs, they must submit a declaration form or an attested photocopy at least 30 days before the Zakat valuation date.
5. Frozen Accounts – If an account has been frozen by a regulatory authority, it is not subject to Zakat deduction.
6. Insufficient Balance Throughout the Year – If the account balance remained below the Nisab threshold for the entire year, the account holder may file for exemption through the local Zakat Committee at least 15 days before the deduction date.

Also read; 

Pakistan announces ‘Zakat Nisab’ for Ramadan 2025

Ramadan 2025 in Pakistan: Fasting hours, duration, office timings and more

How to Apply for Zakat Exemption

According to the Zakat and Ushr Ordinance of 1980 and the Zakat Collection and Refund Rules of 1981, account holders must submit a Zakat Declaration (Form CZ-50) to claim exemption from automatic deductions.

To ensure validity, the declaration must be:

1. Signed and attested by an Oath Commissioner on a Non-Judicial Stamp Paper valued at no less than PKR 50.
2. Submitted to the bank at least 30 days before the first day of Ramadan.
3. If submitting a photocopy, it must be notarized by a Notary Public.