SBP fixes Nisab for Zakat deduction on bank accounts

On Monday, the SBP fixes Nisab for Zakat deduction on bank accounts as the RS46329 for the current year to be nisab for Zakat, according to a declaration.

SBP/ Handout through The News “No deduction of Zakat at source shall be made […] if, on the first day of Ramzan ul Mubarak, 1141 AH, the sum credited to an account is less than Rs 46,329,” read the document.

Niudeāb (practically speaking) is the minimum sum a Muslim must have before being subjected to zakat. Several hadiths have formulas to measure nisāb, the most famous of which states that No Zakāt is due to riches before one year passes. 

Zakat is calculated on the basis of the amount of wealth acquired; the bigger the assets, the higher the tax. Unlike income tax, niāb is not entitled to special exemptions in secular states.

In Islam, there are 20 dinārs for gold and 200 dirhams for silver based on the exchange rate original from 1 to 10. The dinār is a gold coin weighing 4.25 grams and a silver coin is 2.975 grams . 

The nisab refers to the accumulated stock of dinārs, dirham and all other zakatable valuables, such as merchandise in stock for at least one year. The zakat will be paid as long as the cumulative amount of the zakatable valuables exceeds the value of the nisāb.

“The first day of Ramzan has already been informed as the deduction date likely to fall on April 24 or 25, 2020 (relating to the emergence of the moon) for Zakat’s deduction from Saving Bank Accounts, Benefit and Loss Sharing Accounts and other related Accounts having credit balance  Rs46,329.00,” read the document.

In addition to the threshold amount known as the “Nisab,” Zakat is liable as one of the five pillars of Islam. “To deduct the Zakat accordingly, all the Zakat Collection Agencies (ZCCAs) have to be accessed.