Ramadan 2024, Nisab set at Rs135,179 for Zakat

As Ramadan approaches this year, the Ministry of Poverty Alleviation and Social Security has announced that banks will commence deducting Zakat for 1444-45 Hijri from accounts holding a minimum balance of Rs135,179. This decision, in line with the Zakat and Ushr Ordinance 1980, mandates a 2.5% deduction on the entire balance for eligible accounts. Accounts falling below the specified threshold on the first day of Ramadan will be exempt from Zakat deduction, as per the ministry’s notification. With the first day of Ramadan projected to be on March 12, contingent on the sighting of the moon, individuals meeting the wealth criteria outlined by the Nisab will be subject to Zakat deduction. Notably, the increasing Nisab for Zakat reflects the country’s escalating inflation, with the threshold soaring from approximately Rs46,000 in 2020 to over Rs135,000 in 2024. To opt out of Zakat deduction, account holders may submit a “Zakat exemption” form to their respective banks.