The federal government has fixed Rs 38,406 Nisab for deduction of Zakat from specific bank accounts. The Administrator General Zakat has notified the Nisab of Zakat for the year 1437-38 A.H.

According to Ministry of Religious Affairs and Interfaith Harmony, no deduction of Zakat at sources will be made, in case the amount standing to the credit of an account in respect if assets mentioned in column 2 of serial No 1 of the first schedule of Zakat and Ushr Ordinance 1980, is less than Rs 38,406 (thirty eight thousand four hundred six rupees only) on the first day of Ramzan-ul-Mubarak 1438 A.H.

This year the Zakat Nisab has been increased by some 8 percent because of some surge in gold and silver prices. "Nishab of Zakat" for this year is some Rs 2,849 higher than previous year (2016), in which banks deducted Zakat at minimum deposits of Rs 35,557.

The ministry has also notified first day of Ramazan as the "deduction date" likely to fall on May 27 or 28, (subject to appearance of moon) for deduction of Zakat from Saving Bank Accounts, Profit and Loss Sharing Account and other similar accounts having a credit balance of Rs 38,406.

The ministry has asked all the Zakat Controlling Agencies to deduct Zakat accordingly and a copy of the return of form CZ-08A may be provided to ministry of religious affairs immediately after depositing Zakat in Central Zakat Account CZ-08 being maintained with the State Bank of Pakistan.-Business Recorder