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2.5pc Zakat to be levied on deposits above Rs 35,557

ISLAMABAD (Dunya News) – Bank accounts with deposits worth more than Rs 35,557 will be subjected to Zakat cut as per the government’s fresh directives for the financial year 2016-17, reported Monday.

According to State Bank of Pakistan, Zakat will be deducted by banks from Saving Accounts, Profit and Loss Sharing Accounts and Similar Accounts having credit balance of over 35,557 rupees on first of Ramazan.

The imposition is made under the Zakat and Ushr Ordinance 1980.

Drawing from the tax slab rate for the fiscal year 2016-17, Rs 1,250 will be cut from each account having Rs 50,000.

Saving accounts with Rs 0.1 million will see a cut worth Rs 2,500. All the banks in the country will deposit Zakat due from all savings accounts to the national exchequer.

For the purpose, all branches of national and international banks in the country will remain closed for public dealings on first of Ramazan.

On the other hand, State Bank has revised timings of banks for the holy month of Ramazan. Banks will remain open from 8:00am to 1:45pm from Monday to Thursday while the fund depositories will close at 12:00pm on Fridays.

It should also be mentioned here that the people who mistrust the government with utilization of Zakat funds may use exemption forms.