Bank Zakat Deduction in Pakistan on 1 Ramadan

Every year, the first day of Ramadan brings the same question in family WhatsApp groups: the bank cut money from my account, is my zakat paid? The short answer is that the deduction counts towards your zakat, but it rarely covers all of it.

Which bank accounts are deducted?

• Savings and profit-and-loss sharing accounts, term deposits and some government savings certificates held by Muslim citizens.
• Only if the balance on 1 Ramadan is at or above the deduction nisab the government notifies shortly before Ramadan.
• Current accounts, and accounts of non-Muslims, are not deducted.

Exemption: the CZ-50 declaration

A Muslim who is exempt on grounds of their fiqh, most commonly followers of Fiqh-e-Jafaria, can submit a CZ-50 declaration to the bank. It is an affidavit on stamp paper, attested as the bank requires, and it must reach the bank before Ramadan; banks usually ask for it a few weeks early. Ask your branch for its current form and deadline. Our PDF report is a personal estimate and cannot be used for this or any other official purpose.

How to file the CZ-50 form, step by step

1. Get the format from your bank’s branch or website. Banks, the National Savings Centres, mutual funds and insurers each publish the same CZ-50 text under the Zakat and Ushr Ordinance 1980.
2. Print it on stamp paper. Most banks ask for Rs 50 stamp paper; check what your bank accepts.
3. Fill it in: your name, father’s or husband’s name, CNIC number, address, the account or certificate numbers, and the fiqh you follow.
4. Sign it before an oath commissioner or notary, with two witnesses if the format asks for them.
5. Submit the original to each institution that holds your money: one for each bank, and separate ones for savings certificates, funds and insurance. Some banks also accept it through their app or online banking.
6. Keep the acknowledgement. The State Bank tells banks to stamp, date and sign a photocopy for you; it is your proof if zakat is deducted by mistake.

CZ-50 deadline for Ramadan 2027

The deduction is made on the balance of 1 Ramadan 1448, expected around 8 February 2027. The declaration has to be on the bank’s record before that day, and banks need time to mark the account, so file it in December or early January rather than in the last week. Your branch can tell you its own cut-off date. If zakat was deducted although you had filed in time, ask the bank for a refund with your acknowledged copy.

Not eligible for CZ-50 but want to pay zakat yourself? Keeping savings in a current account avoids the automatic deduction; then pay your full zakat on your own date.

Bank nisab in past years

This figure only decides whether an account is deducted. Your own zakat uses the shar’i nisab on your zakat date; see nisab today for the difference, and zakat 2027 Pakistan for this season’s dates.

Do I have to pay zakat again?

You pay the difference. Calculate your full zakat on all your wealth, then subtract what the bank already deducted. In our calculator, tap Already paid and enter the bank’s deduction: it shows what is still left to pay. The bank looks at one account, on one fixed date, with the government’s nisab. Your own zakat covers gold, cash at home, other accounts and business assets, on your own zakat date.

Example

Sana had Rs 8,00,000 in a savings account on 1 Ramadan, so the bank deducted Rs 20,000. She also owns 4 tola of 24K gold and keeps Rs 1,50,000 at home. At an example rate of Rs 4,30,000 a tola her gold is worth Rs 17,20,000, so her total is Rs 26,70,000. Her full zakat in the Hanafi madhab is 2.5% of that, Rs 66,750, and she still owes Rs 46,750 after the bank’s Rs 20,000. Gold prices change, so the calculator uses today’s rate.

How to avoid paying twice

• Keep the bank’s zakat deduction certificate (shown on your statement) and subtract it from your total.
• If you prefer to pay all your zakat yourself, keep long-term savings in a current account so the bank does not deduct, and pay in full on your own date.
• Submit CZ-50 only if you are genuinely eligible under your fiqh.

Hold National Savings certificates? Some schemes are deducted at source and some are exempt: see zakat on savings certificates.

Please ask your scholar about your own situation. Calculate the full amount with the Pakistan zakat calculator; if you follow Fiqh-e-Jafaria, see the Shia zakat calculator and khums calculator.

Frequently asked questions