Zakat deduction by banks on 1st Ramazan

KARACHI: Zakat will be deducted from savings accounts having deposits of Rs38,810 or more on first day of the holy month of Ramazan, said a circular of State Bank of Pakistan (SBP) on Thursday.

The SBP has directed all the commercial banks to deduct Zakat at the rate of 2.5 percent from their savings accounts with deposits of Rs38,810 or more on the first day of Ramzan.

However, the central bank said that the current and salary accounts will remain exempted from Zakat deduction.