FREQUENTLY ASKED QUESTIONs

[ ZAKAT ]

Q.16       On which scheme(s), the Zakat is applicable and how?

Ans:     Zakat is collected from investment made in Defence Savings Certificates, Special Savings Certificates (Regd), Savings Account and Special Savings Account.  In case of Defence Savings Certificates, the Zakat is collected @ 2.50% on the accumulated value of the certificate(s) (i.e. principal + profit) as on the Zakat valuation date preceding the date of encashment.  Whereas, in case of Special Savings Certificates (Regd), Savings Account and Special Savings Account the Zakat is collected @ 2.50% of the principal of that particular maturity.

 Q.17     Is there any time constraint for submitting a Zakat Declaration seeking exemption from collection of Zakat?

 Ans:    Yes, there is definitely a time limit.  The said declaration can easily be submitted at the time of investment or after that, but it should be furnished before 1st Shabban so as to make it effective for the coming Ramadan.  Any declaration submitted after the 1st Shabban will be applicable for the next year and not for the current Islamic calendar year.

 Q.18      I am a non-resident Pakistani and want to make some investment in National Savings Schemes (NSS), whether, the said investment will be exempt from Zakat or not?

Ans:       Any assets acquired against payment in foreign currency or maintained in foreign currency are to be treated as exempt from compulsory collection of Zakat. An account, which is opened with foreign currency and out of which an account can be withdrawn in foreign currency or local currency does not change the nature of the account.

 Q.19     Is there any Zakat collection in case of reinvestment of existing Certificates?

Ans:        No. Zakat is only collected at the time of actual encashment.

 


 

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