Tag: zakat

  • Govt increases profit rates on national saving schemes following record policy rate hike

    Govt increases profit rates on national saving schemes following record policy rate hike

    In response to increasing policy rates, the Pakistani government has announced significant raises in profit rates for all national savings schemes (NSS) from April 10, 2023. This decision follows the State Bank of Pakistan’s (SBP) considerable increase in the policy rate to a record 21 per cent in its recent Monetary Policy Committee meeting to combat inflation.

    The Finance Division announced on Friday, through a notification issued under Rule-II of the Pensioners’ Benefit Accounts Rules, 2003, that the rate of profit on deposits made in Pensioners’ Benefit Accounts and Behbood Savings Certificates will be 16.56 per cent per annum from April 10, 2023, until further notice.

    Additionally, the rate of profit on deposits made in Shuhada’s Family Welfare Account will be 16.56 per cent per annum from April 10, 2023, until further notice.

    The Central Directorate of National Savings (CDNS) has also increased the profit rate on Defence Saving Certificates from 9.29 per cent to 14.87 per cent. The profit rate on Regular Income Certificates has been raised to 12.84 per cent of the total investment.

    Similarly, the profit margin on the three-year Special Saving Certificates and Special Savings Account has been increased to 17 per cent for the first five profits and to 17.8 per cent for the sixth profit. Furthermore, the return on Saving Accounts (running accounts) has been raised to 18.5 per cent. However, it’s worth noting that there will be a deduction of Withholding Tax and Zakat as per the rules.

  • Nisab amount of zakat deduction set at Rs88,927 for 2022

    Nisab amount of zakat deduction set at Rs88,927 for 2022

    The nisab amount of zakat for the year 2022 is set at Rs88,927, according to a notification dated March 30, 2022, issued by the Poverty Alleviation & Social Safety Division, Cabinet Secretariat, Government of Pakistan.

    The account holders, maintaining a minimum of Rs88,927 balance on the first day of Ramzan would be liable to pay 2.5 per cent Zakat on the first day of the fasting month of Ramzan.

    If the amount standing to the credit of an account is less than the said amount, no Zakat deduction shall be made. While savings, profit-and-loss sharing, and other similar accounts are subject to nisab deductions. it is worth noting that the zakat deduction has surged by Rs7,994 as compared to last year, due to an increase in gold and silver prices.

    Read more: Banks to remain closed for public dealing on 4 April

    The amount for nisab in 2021 was set at Rs80,933 and Rs46,329 for 2020. In the majority of Islamic countries, It is adjusted at 2.5 per cent of one’s wealth above the nisab.