PUNJAB ZAKAT AND USHR ACT 2018

Exact source transcription retained, including print layout and extraction artifacts. Text SHA-256: 1a5bc40fc56bb65712930757f700d41c578631b57feb2725f2b1f6c36d1981f1.

THE PUNJAB ZAKAT AND USHR ACT 2018  
(IV of 2018) 
CONTENTS 
1. Short title, commencement, extent and application 
2. Definitions 
3. Declaration 
4. Charge and collection of Zakat 
5. Charge and collection of Ushr 
6. Mode of assessment and collection of Ushr 
7. Zakat Funds 
8. Utilization of Zakat Funds 
9. Disbursements from Zakat Funds 
10. Accounts 
11. Audit 
12. Punjab Zakat and Ushr Council 
13. Chief Administrator 
14. District Zakat and Ushr Committee 
15. Local Zakat and Ushr Committee 
16. Vacancy or defect not to invalidate proceedings 
17. Members of Council and Committees to be Muslims 
18. Person to preside at meetings in the absence of Chairman 
19. Power of removal 
20. Vote of no confidence 
21. Certain persons to be public servants 
22. Chairmen and members to act on honorary basis 
23. Power to make rules 
 
 
24. Power to call for information and issue directions 
25. Indemnity and bar of jurisdiction 
26. Removal of difficulties 
27. Repeal, succession and savings 
 
 
TEXT 
1
THE PUNJAB ZAKAT AND USHR ACT 2018 
(IV of 2018) 
[15  February, 2018] 
An 
Act 
to make provisions relating to assessment, collection and disbursement of Zakat 
and Ushr in the Punjab. 
It is necessary to make  provisions for assessment, collection and 
disbursement of Zakat and Ushr in the Punjab and to provide for ancillary matters. 
Be it enacted by Provincial Assembly of the Punjab as follows: 
CHAPTER I 
PRELIMINARY 
1. Short title, commencement, extent and application.– (1) This Act may be 
cited as the Punjab Zakat and Ushr Act 2018. 
 (2) It shall come into force at once. 
(3) It extends to whole of the Punjab, but as regards payment and 
recovery of Zakat or Ushr, it only applies to Muslim residents and a company , or 
other association of persons, or body of individuals, whether incorporated or not, 
majority of the shares of which is owned, or the beneficial ownership of which is held 
by such residents. 
2. Definitions.– In this Act: 
(a) “annuity” means the sum paya ble periodically, according to the annuity 
policy conditions, to an annuitant during his life -time, or for a fixed 
number of years, and includes the scheme of postal annuities as 
notified by the Government; 
(b) “assets” means the assets liable to Zakat as provided in the Act; 
(c) “atiyyat” means voluntary donations to a Zakat Fund, otherwise than on 
account of Zakat or Ushr, and includes sadaqat-e-nafilohs; 
(d) “Board of Revenue” means Board of Revenue for the Punjab 
established under the Punjab Board of Revenue Act, 1957 (XI of 1957); 
(e) “Chief Administrator” means Secretary, Government of the Punjab, 
Zakat and Ushr Department; 
(f) “company” means a company as defined in the Companies Act 2017 
(XIX of 2017) or in any other law on the subject; 
                                                 
1This Act was passed by the Provincial Assembly of the Punjab on 07 February 2018; assented to by the Governor of the 
Punjab on 13 February 2018; and, was published in the Punjab Gazette (Extraordinary), dated: 15 February 201 8, pp. 5849 -
5866. 
 
 
(g) “Council” means Punjab Zakat and Ushr Council constituted under 
section 12 of the Act; 
(h) “deducting agency” means a bank or any of its branch, post office or 
other financial institution including National Savings Center, trustee of 
the National Investment (Unit) Trust or its authorized agent, Investment 
Corporation of Pakistan or any of its office or center of an insurer or 
any other organization or authority operating in the Punjab and referred 
to in First Schedule; 
(i) “deduction date” means, in respect of the a ssets mentioned in First 
Schedule, the date or dates on which Zakat is to be deducted at source 
and which is or are specified in that Schedule; 
(j) “District Zakat and Ushr Committee” means a committee constituted 
under section 14 of the Act; 
(k) “Government” means Government of the Punjab; 
(l) “Government security” means the Government security as defined in 
the Securities Act, 1920 (X of 1920); 
(m) “institution” means a deeni madrasah, educational, vocational or social 
welfare institution, public hospital , charitable institution or any other 
institution providing healthcare facilities, or a public sector organization 
providing assistance to the poor, needy or indigent persons; 
(n) “insurer” means State Life Insurance Corporation of Pakistan, Postal 
Life Insurance or any other insurance company; 
(o) “Local Zakat and Ushr Committee” means a committee constituted 
under section 15 of the Act;  
(p) “locality” means the area within the jurisdiction of a Local Zakat and 
Ushr Committee; 
(q) “maturity value” means t he sum payable, according to the stipulated 
conditions, on survival of the life assured to the specified age or to the 
end of the term of the policy; 
(r) “nisab” in relation to assets liable to Zakat, except agricultural produce 
and animals fed free in pas tures, means 612.32 grams of silver, or 
cash or gold, or goods for trade, or any assets liable to Zakat under 
Shariah, the aggregate  value of which is equal to the value of 612.32 
grams of silver, as notified by the Chief Administrator for each Zakat 
year or, in the case of a person whose assets liable to Zakat consist 
only of gold, 87.48 grams of gold; 
(s) “prescribed” means prescribed by rules; 
(t) “produce” means gross agricultural, horticultural or forest produce;  
(u) “Provident Fund” means the Provident Fund as defined in the Provident 
Funds Act, 1925 (XIX of 1925);   
(v) “recognized Provident Fund” means a Provident Fund recognized by the 
competent authority under the Income Tax Ordinance, 2001 (XLIX of 
2001); 
 
 
(w) “return” means income, howsoever described, accruing on an asset;  
(x) “rules” mean the rules made under the Act; 
(y) “sahib-e-nisab” means a person who owns or possesses assets not  
less than the nisab, but does not include: 
(i) the Government, the Federal Government, a Provincial 
Government or a local authority; 
(ii) a statutory corporation, a company or other enterprise, owned 
wholly, directly or indirectly, by the Government, the Federal 
Government, a Provincial Government, a local authority or a 
corporation owned by the Government, the Federal Gov ernment 
or a Provincial Government or a local authority; 
(iii) a subsidiary of a statutory corporation, a company or other 
enterprise referred to in sub-clause (b) and wholly owned by it; 
(iv) the National Investment (Unit) Trust; 
(v) the Investment Corporation of Pakistan and its Mutual Fund;  
(vi) a recognized Provident Fund; 
(vii) any Unit Fund maintained by the Defence Services, including 
the Civil Armed Forces; 
(viii) a Zakat Fund; 
(ix) an institution, fund, trust, endowment or society registered as a 
charitable organization under the Soci eties Registration Act, 
1860 (XXI of 1860) , or as a company under section 42 of the 
Companies Act, 2017 (XIX of 2017) , or registered or approved 
as a charitable or social welfare organization under any other 
law, and is exempted from the payment of income tax by 
Federal Board of Revenue under the Income Tax Ordinance, 
2001 (XLIX of 2001);  
(x) a deeni madrasah registered as such by the Government; 
(xi) a mosque; 
(xii) an orphanage registered under the law relating to orphanages; 
(xiii) a Workers Participation Fund established un der the Companies 
Profits (Workers’ Participation) Act, 1968 (XII of 1968); or 
(xiv) the amount of a party to a suit or case kept with or under orders 
of a court pending decision of the suit or case; 
(z) “Schedule” means a Schedule appended to the Act; 
(aa)  “security” means any stock, share, script, debenture, bond, pre -
organization certificate, or instrument commonly known as security; 
(bb)  “share” means a share in the share -capital of a company, or in any 
body corporate established by or under a law, and includes stock; 
(cc)  “surrender value” means a sum payable by an insurer on cancellation 
of a life -insurance policy or annuity, according to the stipulated terms 
 
 
and conditions, at any time before the maturity benefits become 
available; 
(dd)  “survival benefi t” means the amount payable according to life -
insurance policy conditions, during the currency of a policy, on survival 
of the life assured to the specified date as stipulated in the policy; 
(ee)  “valuation date” means– 
(i) in respect of assets liable to Zakat, the first day of the Zakat year; 
and 
(ii) in respect of produce liable to Ushr, such date or dates as may 
be prescribed or as may be notified by the Chief Administrator, 
for the evaluation of the assets or the produce for purposes of 
the Act; 
(ff)  “Zakat Funds” mean Funds established under section 7 of the Act; and 
(gg)  “Zakat year” means the year according to the Hijra calendar for which 
Zakat is chargeable, commencing on the first day of Ramadan -ul-
Mubarak and ending with the last day of the foll owing Sha’ban -ul-
Moazzam.  
3. Declaration.– (1) Notwithstanding anything contained in the Act, no Zakat or 
Ushr shall be charged or collected on compulsory basis in respect of the assets or 
the produce of a person who, not less than thirty days preceding t he valuation date 
in case of Zakat and at any time before the valuation date in case of Ushr, files with 
the deducting agency, or with the Council in the case of Ushr, a declaration, or an 
attested copy thereof, in the prescribed form, sworn by him before a magistrate, an 
oath commissioner, a notary public, or any other person authorized  to  administer  
oath, in the presence of two witnesses who identify him, to the effect that he is a 
Muslim and he shall specify in the declaration that his faith does not oblige him to 
pay the whole or any part of Zakat or Ushr in the manner laid down in the Act. 
(2) A declaration, or an attested copy thereof, filed under subsection (1) in 
one Zakat year, whether before or after the commencement of the Act, shall continue 
to be valid for so long as: 
(a) the declaration or copy, and the asset liable to Zakat to which it relates, 
remain in the custody of the deducting agency; or 
(b) the person filing the declaration or its copy continues to hold, in respect 
of the land and the  produce to which it relates, the same status as he 
held at the time of filing the declaration, and the copy of declaration 
remains in the custody of the Council. 
CHAPTER II 
ZAKAT 
4. Charge and collection of Zakat .– (1) Subject to the provisions of the Act , 
Zakat in respect of assets mentioned in First Schedule shall be charged and 
collected, on compulsory basis, for each Zakat year, at the rate and in the manner 
specified therein, and as may be prescribed, from every person who is on the 
 
 
valuation date, an d for whole of the preceding Zakat year has been, sahib -e-nisab, 
and who owns or possesses such assets on the valuation date. 
(2) Zakat shall be compulsorily deducted by a deducting agency from the 
assets at source as per rate and manner prescribed in Firs t Schedule and the 
deducted amount shall be deposited in the Provincial Zakat Fund account. 
(3) Wherever there is no head office of a deducting agency in the Punjab 
but there is a branch office, such branch office shall be the deducting agency for 
purposes of the Act. 
(4) Where a deducting agency fails to deduct or deposit the amount 
deducted in terms of the Act, the amount of Zakat shall be recoverable from the 
deducting agency as arrears of land revenue. 
(5) Where an asset mentioned in First Schedule has been assigned by the 
person owning or possessing it in favour of another person, Zakat in respect of that 
asset shall be charged and collected on compulsory basis as if the asset had not 
been so assigned. 
(6) If an asset was owned or possessed by a person on the valuation date 
but is owned or possessed by some other person on the deduction date, the Zakat 
on such asset shall be charged and collected from such  other person on behalf of 
the person owning or possessing it on the valuation date. 
(7) In determi ning the amount to be collected as Zakat on compulsory 
basis, the value of an asset on which Zakat is deductible at source may be reduced, 
to the extent and in the manner prescribed, on account of debts which have been: 
(a) primarily secured by that asset; 
(b) used for the creation of an asset on which Zakat is deductible at 
source; and 
(c) obtained from the deducting agency having custody of the asset 
securing the debt and of the asset created under clause (b). 
(8) If a person proves, in the prescribed man ner, to the satisfaction of the 
Council that he was not a sahib-e-nisab on the valuation date or was not in ownership 
or possession of assets of the value of nisab for the whole of the preceding Zakat year, 
Zakat shall not be so charged and collected from him, or if collected shall be refunded to 
him in the prescribed manner. 
(9) No Zakat shall be charged and collected from the assets of a person 
who died on or before the deduction date. 
(10) No Zakat shall be charged or collected on compulsory basis in res pect 
of any of the assets mentioned in First Schedule which: 
(a) have been acquired against payment in foreign currency; or 
(b) are maintained in foreign currency and the return on which and the 
value on encashment, redemption or withdrawal of which, is pa yable in 
foreign currency. 
(11) The Government may, by notification in the official Gazette, exempt 
any class of bonds or certificates issued by the Government, the Federal 
Government or a Provincial Government or a statutory corporation, a company or 
 
 
other enterprise, owned, directly or indirectly, singly or jointly, by the Government, 
the Federal Government, a Provincial Government, a local authority or a corporation. 
 (12) Where a person from whom Zakat has been deducted at source: 
(a) proves that: 
(i) he is not a Muslim; or 
(ii)  he is not a citizen of Pakistan; or 
(iii) the amount deducted from him is more than what is due under 
the Act, either on account of an error apparent on the face of 
record, or on  account of reduction provided for in subsection ( 7) 
not having been duly allowed to him; or 
(iv) he falls under any of the exclusions given in clause (y) of section 
2 of the Act; or 
(b) proves, as laid down in subsection (8), that he is not a sahib -e-nisab or 
was not in ownership or possession of nisab for the whole of the 
preceding Zakat year; or 
(c) files a declaration in terms of section 3 of the Act and claims refund;  
the amount deducted as Zakat, or the amount deducted as Zakat was in excess,  
the Council shall, within sixty days of submission of th e claim for refund, decide the 
refund case in the prescribed manner.  
 (13) If the refund under subsection (12) is not claimed within a period of ninety 
days from the date of deduction, the amount so deducted shall be treated as 
contribution to the Zakat Fund as sadaqah or khairat on the part of that person. 
(14) Where the recovery of Zakat deductible at source, in respect of any of 
the assets mentioned in First Schedule, falls into arrears, the Chief Administrator  
may forward to the Collector of the distri ct concerned a duly signed certificate 
specifying the amount of arrears due and the particulars of the person from whom 
due, and the Collector shall, on receipt of such certificate, proceed to recover the 
amount so specified, as if it were an arrears of land revenue. 
 (15) A sahib -e-nisab may pay either to a Zakat Fund or directly to those 
eligible under Shariah to receive Zakat so much of the Zakat due under Shariah as is 
not deductible at source under the Act, on assets mentioned in Second Schedule. 
CHAPTER III 
USHR 
5. Charge and collection of Ushr .– (1) Subject to the Act, there shall be 
charged and collected, on compulsory basis, in such manner as is laid down in 
section 6 of the Act, and as may be prescribed, from every land -owner, grantee, 
allottee, lessee, lease-holder or land -holder (other than a person excluded from the 
definition of sahib -e-nisab), Ushr at the rate of five per cent of his share of the 
produce, as on the valuation date. 
 (2) If any plot of land is used principally for growing one cro p and a small 
portion thereof, not exceeding one -fourth of an acre, is used for growing another 
crop, Ushr shall not be charged in respect of the produce of such small portion. 
 
 
Explanation.– In this section and section 6 of the Act, ‘land -owner’, ‘grantee’ , 
‘allottee’, ‘lessee’, ‘lease-holder’ and ‘land-holder’ shall have the same meaning as in 
the laws relating to land administration, and ‘land -holder’ includes a person in 
possession of any plot of land who has grown a crop on such plot. 
 (3) An individual  land-owner, grantee, allottee, lessee, lease -holder or 
land-holder shall be exempt from the compulsory levy of Ushr if: 
(a) he is eligible under Shariah to receive Zakat; or 
(b) the produce from his land is less than five wasqs (948 kilograms) of 
wheat, or its equivalent in value in the case of other crops liable to Ushr. 
 (4) The currency equivalent of five wasqs of wheat in value shall be such 
as the Chief Administrator may notify for each Zakat year. 
 (5) Ushr shall be the first charge on the produce. 
 (6) Ushr shall be collected in cash, except in case of wheat or paddy, for 
which, Ushr, at the option of the Council, may be collected in kind. 
 (7) A sahib-e-nisab may pay either to the Provincial Zakat Fund or directly 
to those eligible under Shariah to receive Zakat, so much of the Ushr due  under 
Shariah as is not compulsorily realizable under the Act, on assets mentioned in 
Second Schedule. 
6. Mode of assessment and collection of Ushr .– (1) The Board of Revenue 
shall cause the assessment and collection of Ushr in respect of a land -owner, 
grantee, lessee, lease-holder or land holder in the prescribed manner, and maintain 
the record containing such information for a crop season as may be required for 
purposes of the Act. 
 (2) An assessee, aggrieved by the assessment under subsection (1), may, 
within thirty days of the order of assessment, apply, in the prescribed form and 
manner, to the Assistant Collector or an officer notified by the Government, for the 
revision of the assessment. 
 (3) No application unde r subsection (2) shall be admitted unless the 
applicant has deposited into the Provincial Zakat Fund not less than fifty per cent of 
his liability as assessed under this section. 
 (4) The Assistant Collector or the officer notified under subsection (2) may , 
at any time, either of his own motion or on the application of an adult Muslim residing 
within his jurisdiction, make an order enhancing the liability assessed under 
subsection (1). 
 (5) No order under subsection (4) shall be made unless the person 
affected has been given an opportunity of showing cause against it and of being 
heard. 
 (6) The Assistant Collector or the officer notified under subsection (2) to 
whom an application is made under subsection (2) or subsection (4), or who takes 
up a matter on h is own motion under subsection (4), shall give his decision within a 
period not exceeding thirty days from the date on which he receives the application 
or takes up the matter; and, such decision shall be final and shall not be called in 
question before any court or other authority. 
 
 
 (7) The demand as determined under this Chapter shall be paid by the 
assessee and collected by the Board of Revenue in such manner as may be 
prescribed and deposited into the Provincial Zakat Fund. 
 (8) Where the recovery of Us hr compulsorily realizable under the Act falls 
into arrears, the Assistant Collector or the officer notified by the Government shall 
proceed to recover the amount so specified as if it were arrears of land revenue. 
CHAPTER IV 
ZAKAT FUNDS 
7. Zakat Funds.– There shall be established the following Zakat Funds: 
 (a) Provincial Zakat Fund to which shall be credited: 
(i) Zakat deducted at source, arrears of Zakat and Zakat paid 
voluntarily; 
(ii) transfers, if any, from the District Zakat Fund;  
(iii) transfers, if any, from the Local Zakat Fund;  
(iv) proceeds of Ushr; and 
(v) grants, atiyaat and any other receipts; 
(b) a District Zakat Fund for each District to which shall be credited: 
(i) transfers from the Provincial Zakat Fund; and 
(ii) transfers, if any, from the Local Zakat Fund or institutions. 
(c) a Local Zakat Fund for each Local Zakat and Ushr Committee  to which 
shall be credited: 
 (i) transfers from the District Zakat Fund; and 
 (ii) transfers from the Provincial Zakat Fund. 
8. Utilization of Zakat Funds .– (1) The moneys in a Zakat Fund shall be 
utilized for the following purposes: 
(a) assistance to the needy, the indigent and the poor particularly orphans 
and widows, the handicapped and the disabled, eligible to receive 
Zakat under Shariah for their subs istence or rehabilitation, either 
directly or indirectly  through institutions; 
(b) assistance to the needy persons affected or rendered homeless owing 
to natural calamities, such as floods and earthquakes, and for their 
rehabilitation; 
(c) expenditure on the collection, disbursement and administration of 
Zakat and Ushr; 
(d) investment in any non -interest bearing instruments as is permitted 
under Shariah; and 
(e) any other purpose permitted by Shariah. 
 
 
(2) The Government shall meet the expenditure on the ad ministrative 
organization of the Chief Administrator, the Council and a District Zakat and Ushr 
Committee. 
 (3) Where expenditure on the administrative organization of a District 
Zakat and Ushr Committee is not fully met by the Government due to paucity of  
funds during a financial year, the Council may provide supplementary funds not 
exceeding two percent from within the limit specified in subsection (4). 
 (4) The funds not exceeding ten percent approved in the budget shall be 
retained in the Provincial Zak at Fund to meet such additional expenditure of a 
District Zakat and Ushr Committee or a Local Zakat and Ushr  Committee 
2
[or any 
other service providing Agency] as may be approved by the Council. 
 (5) The banking services and the services connected with the assessment, 
collection or disbursement of Zakat and Ushr realizable on compulsory basis under 
the Act shall be rendered free of charge, except 
3
[the Punjab Zakat and Ushr Council], 
in regard to Ushr, may authorize payment of remuneration for any specified services. 
 (6) The lists of the individuals to be assisted directly and of the institutions 
through which assistance is to be given from a Zakat Fund shall be prepared and 
maintained in such form and manner as may be prescribed. 
9. Disbursements from Zaka t Funds .– (1) The Council shall prepare budget 
for each financial year. 
 (2) The Council may, from the Provincial Zakat Fund, make disbursements 
and transfer funds to the District Zakat Funds on the basis of population or to an 
institution in such form and  manner as may be prescribed and as would help in 
ensuring satisfaction of the needs of the needy and the poor throughout its 
jurisdiction, as far as possible, on a uniform basis. 
 
4
[(3)  A District Zakat and Ushr Committee may make disbursements and 
transfer funds through crossed cheques or bank advice, banks, post offices or any 
other financial institutions from District Zakat Fund to the eligible persons or to a 
Local Zakat Fund or to any other institution or incur other administrative expenditure 
subject to such conditions as may be prescribed and may, whenever directed by the 
Council, transfer any funds, surplus to its needs, to the Provincial Zakat Fund.] 
 (4) A Local Zakat and Ushr Committee shall make disbursement or incur 
expenditure from the Local Zakat Fund through crossed cheques in the prescribed 
manner. 
 (5) A Local Zakat and Ushr Committee may, if so required by the Council 
or the District Zakat and Ushr Committee, transfer any funds surplus to its needs 
from the Local Zakat Fund to the Provinc ial Zakat Fund or, as the case may be, the 
District Zakat Fund. 
                                                 
2Inserted by the Punjab Zakat And Ushr (Amendment) Act 2019 (XIX of 2019), published in the Punjab Gazette (Extraordinary), 
dated: 26th November 2019, pp. 1671-1672, s.2 
3Substituted for the expression “ that the Chief Administrator” by the  Punjab Zakat And Ushr (Amendment) Act 2019  (XIX of 
2019), published in the Punjab Gazette (Extraordinary), dated: 26th November 2019, pp. 1671-1672, s.2. 
4Substituted by the Punjab Zakat And Ushr (Amendment) Act 2019  (XIX of 2019 ), published in the Punjab Gazette 
(Extraordinary), dated: 26th November 2019, pp. 1671-1672, s.3 
 
 
 (6) The Council or a District Zakat and Ushr Committee shall disburse 
Zakat through a bank or a post office or any other financial institution as may be 
determined by the Council on need basi s in such form and manner as may be 
prescribed. 
10. Accounts.– (1) The accounts of the Provincial Zakat Fund, a District Zakat 
Fund, and a Local Zakat Fund shall be maintained and operated, respectively by the 
Chief Administrator, the District Zakat and Us hr Committee and the Local Zakat and 
Ushr Committee, in such form and manner as may be prescribed. 
(2) The records of the accounts of the Zakat Funds shall be preserved for 
such period, and shall be made available for audit or inspection to such persons or  
agencies, and in such manner, as may be prescribed. 
11. Audit.– (1) The Auditor General of Pakistan shall conduct an annual or special 
audit of the Provincial Zakat Fund, a District Zakat Fund, a Local Zakat Fund, including 
the accounts of a deducting agency or an institution receiving Zakat. 
 (2) The audit performed under subsection (1) shall include propriety audit. 
 (3) The Government shall, within two months of the receipt of the audit 
report under subsection (1), lay the reports before the Provincial Assembly of the 
Punjab. 
CHAPTER V 
ORGANIZATION AND ADMINISTRATION 
12. Punjab Zakat and Ushr Council .– (1) The Government shall, by notification 
in the official Gazette, establish the Council, to exercise general superintendence 
and control over matters relating to Zakat and Ushr, particularly the Zakat Funds and 
the maintenance of their accounts, in accordance with the policy guidelines given by 
the Government. 
(2) The Council shall consist of: 
5
[(a) a Chairman who has retired as a civil servant in basic pa y scale 20 or 
above, or has been a judge of a High Court, or in case of non-availability 
of such persons, any person who is not less than forty years of age, is a 
graduate, enjoys good reputation and has knowledge of Shariah;] 
(b) Minister for Zakat and Ushr of the Government as co-chairman;  
(c) eight persons,  including at least three women,  who are not less than 
forty years of age with high moral and social repute from amongst the 
Ulema, scholars, academia or persons having knowledge of Shariah; 
(d) one member of Provincial Assembly of the Punjab from each Division 
to be nominated by the Speaker including at least three women 
members; 
(e) Secretary to the Government, Finance Department.   
                                                 
5Substituted by the Punjab Zakat And Ushr (Amendment) Act 2019  (XIX of 2019 ), published in the Punjab Gazette 
(Extraordinary), dated: 26th November 2019, pp. 1671-1672, s.4 
 
 
(f) Secretary to the Government, Social Welfare and Bait -ul-Maal 
Department; 6[***] 
7
[(g) Secretary to the Government, Specialized Healthcare and Medical 
Education Department;] 
8
[(h) Secretary to  the Government, Primary and Secondary Healthcare 
Department; 
(i) Secretary to the Government, Higher Education Department; 
(j) Secretary to the Government, Industries, Commerce and Investment 
Department; and 
(k) Chief Administrator who shall be the Secretary of the Council; and] 
(3) The Government shall nominate the Chairman and the members, other 
than ex-officio members, of the Council. 
 (4) The Chairman and members of the Council, not being the ex-officio 
members, shall hold office for a term of three years and shall not be eligible to hold 
office for more than two consecutive terms. 
 (5) The Chairman or a member, not being an ex-officio member, may 
tender resignation to the Government. 
 (6) The Chairman or the member shall continue to hold office until the 
Government accepts the resignation. 
 (7) Any vacancy in the office of Chairman or member shall be filled by 
nomination by the Government of a duly qualified person and such person shall hold 
office for the unexpired term of his predecessor. 
9
[(8) The Government may, at any time, remove any member of the Council 
on the recommendation of the Council.] 
13. Chief Administrator.– The Chief Administrator shall be the Chief Executive 
in respect of matters relating to Zakat and Ushr and shall act under the general 
superintendence and control of, and in accordance with the policy guidelines given 
by the Council. 
14. District Zakat and Ushr  Committee.– (1) The Government, in consultation 
with the Council, shall constitute, by notification, a District Zakat and Ushr Committee 
for each district.  
 (2) A District Zakat and Ushr Committee shall consist of the following: 
(a) the Chairman who shall be from the private sector; 
(b) District Zakat Officer; 
                                                 
6Omitted by the Punjab Zakat And Ushr (Amendment) Act 2019 (XIX of 2019), published in the Punjab Gazette (Extraordinary), 
dated: 26th November 2019, pp. 1671-1672, s.4  
7Substituted by the Punjab Zakat And Ushr (Amendment) Act 2019  (XIX of 2019 ), published in the Pun jab Gazette 
(Extraordinary), dated: 26th November 2019, pp. 1671-1672, s.4 
8Inserted by the Punjab Zakat And Ushr (Amendment) Act 2019 (XIX of 2019), published in the Punjab Gazette (Extraordinary), 
dated: 26th November 2019, pp. 1671-1672, s.4 
9Inserted by the Punjab Zakat And Ushr (Amendment) Act 2019 (XIX of 2019), published in the Punjab Gazette (Extraordinary), 
dated: 26th November 2019, pp. 1671-1672, s.4 
 
 
(c) a representative of the District Administration not below the rank of an 
officer in BS-18; 
(d) 
10
[three] women, not less than forty years of age, from within the district; 
and  
(e) one non-official member from each Tehsil of the district concerned. 
 (3) Where the number of Tehsils in a district is less than five, five non-official 
members shall be nominated from the district with due representation from the Tehsils. 
 (4) The Chairman and the non -official male members shall not be less 
than twenty five years of age.  
 (5) The Chairman and members of the District Zakat and Ushr Committee 
shall be the persons who possess secondary school certificate or equivalent and are 
of sound moral and financial integrity and are not office bearers of any political party. 
 (6) The Chairman shall be nominated by the Council and the members shall 
be nominated by it in consultation with the Chairman, District Zakat and Ushr Committee. 
 (7) A District Zakat and Ushr Committee may co-opt an officer of the Social 
Welfare Department posted in the district, as an ex-officio member of the Committee. 
 (8) The District Zakat Officer shall be the Secretary of the District Zakat 
and Ushr Committee. 
 (9) The Chairman and members of the District Zakat and Ushr Committee, 
not being the ex-officio members, shall hold office for a term of three years and shall 
not be eligible to hold office for more than two consecutive terms. 
(10) The Chairman or a member, not being an ex-officio member, may by 
writing under his hand addressed to the Council, resign his office.  
 (11) The Chairman or the member shall continue to hold office until his 
resignation is accepted by the Council. 
 (12) Any vacancy in the office of Chairman or member shall be  filled by 
nomination in accordance with this section, of a person qualified to hold the office, and 
such person shall hold office for the unexpired term of his predecessor. 
(13) When the office of the Chairman of a District Zakat and Ushr Committee 
becomes vacant, the Government may, by notification, entrust the charge of that office 
to the Deputy Commissioner or any other Officer in the District Administration in Basic 
Pay Scale 18 or above, until the nomination of the Chairman is made by the Council 
under this section. 
11
[(13A) When the tenure of a District Zakat and Ushr Committee expires 
and new Committee is not constituted, the Government may assign the functions of 
the District Zakat and Ushr Committee to the Deputy Commissioner or any other 
officer in the district administration in basic pay scale 18 or above as Administrator to 
perform the functions of the District Zakat and Ushr Committee until the constitution 
of the Committee.] 
                                                 
10Substituted for the words “two” by the Punjab Zakat And Ushr (Amendment) Act 2019  (XIX of 2019), published in the Punjab 
Gazette (Extraordinary), dated: 26th November 2019, pp. 1671-1672, s.5 
11Inserted by the Punjab Zakat And Ushr (Amendment) Act 2019  (XIX of 2019 ), published in the Punjab Gazette 
(Extraordinary), dated: 26th November 2019, pp. 1671-1672, s.5. 
 
 
 (14) The District Zakat and Ushr Committee shall, subject to such 
guidelines as may be given by the Government or the Council: 
(a) oversee, generally, the functioning of administrative organization of 
Zakat and, more particularly, the assessment of Ushr and the 
disbursement and utilization of the moneys in the District Zakat  Fund 
and the Local Zakat Fund; 
(b) prepare and maintain, in the prescribed manner, accounts of the 
District Zakat Fund; 
(c) compile accounts, in the prescribed manner, of the Local Zakat Fund; 
(d) arrange, in the prescribed manner, audit of the Local Zakat Fund;  
(e) tender to the Council advice on any matter specified by it; and 
(f) perform any other function as may be prescribed. 
 (15) The District Zakat and Ushr Committee shall hold meetings of the 
Committee at least once in every two months. 
15. Local Zakat and Ushr Committee .– (1) Subject to subsection (2), a Local 
Zakat and Ushr Committee shall be constituted for: 
(a) a revenue estate in a settled rural area; 
(b) a deh or village in a non-settled rural area; and 
(c) a ward in an urban area. 
(2) If, in  the opinion of the Council, the population of a revenue estate, 
ward, deh or village is too large or too small, to have one Local Zakat and Ushr 
Committee, such revenue estate, ward, deh or village may, if too large, be divided 
into two or more localities , or if too small, grouped with any other revenue estate, 
ward, deh or village to form one locality, and where a revenue  estate, ward, deh or 
village is so divided or grouped that it may cover a population of about ten thousand 
people, the Council may mak e such consequential orders as may be necessary for 
purposes of the Act. 
Explanation.– In this subsection: 
(a) “urban area” means an area notified as an urban area under any law or 
as may be notified by the Government; 
(b) “rural area” means an area other than the urban area; 
(c) “settled rural area” means a rural area for which revenue settlement 
record exists; 
(d) “non-settled rural area” means a rural area other than the settled rural 
area; and 
(e) “ward” means a distinct and compact locality, a mohallah , a block or 
any other division in an urban area under any law or as may be notified 
by the Government. 
 
 
12
[(3) The Local Zakat and Ushr Committee shall consist of a Chairman and 
nine members, including at least three Muslim women who shall not be less than forty 
years of age, selected by the residents of the locality in the manner specified in 
subsection (4) and subsection (5).] 
(4) The District Zakat and Ushr Committee shall constitute a team of three 
persons including one Gazetted Officer of the Government , one notable person of 
the area, and one member of the District Zakat and Ushr Committee to organize a 
public gathering of the adult Muslims, residents of a locality and call upon them to 
select, in the prescribed manner, seven adult Muslims residing in t hat locality and 
fulfill the qualifications mentioned in subsection (6). 
(5) The team constituted by the District Zakat and Ushr Committees shall 
organize a separate gathering of the adult Muslim female residents of the locality and 
call upon them to select, in the prescribed manner, 
13
[three] Muslim women residing in 
that locality and possessing the qualifications mentioned in subsection (6). 
(6) A person shall not be selected as a member of a Local Zakat and Ushr 
Committee unless he is a person of sound moral and financial integrity. 
(7) A person who is member of a team constituted for the selection of 
members of a Local Zakat and Ushr Committee shall not be eligible to be a member 
of such Local Zakat and Ushr Committee.  
(8) Where in a district, the number  of Local Zakat and Ushr Committees is 
so large that the Chairman and members of the District Zakat and Ushr Committee 
cannot be nominated for all the teams constituted for the selection of members of 
Local Zakat and Ushr Committees in the district, the Di strict Zakat and Ushr 
Committee, may nominate on the team any non -official person of the district, eligible 
to be the member of a District Zakat and Ushr Committee. 
(9) The members of a Local Zakat and Ushr Committee, in the presence of 
the team constitute d by the District Zakat and Ushr Committee, shall elect one of 
their members, being a person who possesses secondary school certificate or 
equivalent, to be the Chairman of the Local Zakat and Ushr Committee, and if two or 
more members secure an equal numb er of votes, the result of the election shall be 
determined by draw of lots. 
(10) The District Zakat and Ushr Committee shall notify the Local Zakat and 
Ushr Committees constituted under this section; 
14
[“Provided that where election for the constitution of  a Local Zakat and Ushr 
Committee cannot be held for any reason, the District Zakat and Ushr Committee 
with reasons to be recorded in writing, may appoint an officer in basic pay scale 16 
or above as Administrator to perform functions of the Committee for a period not 
exceeding six months.”] 
                                                 
12Substituted by the by the Punjab Zakat And Ushr (Amendment) Act 2019  (XIX of 2019 ), published in the Punjab Gazette 
(Extraordinary), dated: 26th November 2019, pp. 1671-1672, s.6. 
13Substituted for the words “two” by the Punjab Zakat And Ushr (Amendment) Act 2019 (XIX of 2019), published in the Punjab 
Gazette (Extraordinary), dated: 26th November 2019, pp. 1671-1672, s.6. 
14Substituted by the by the Punjab Zakat And Ushr (Amendment) Act 2019  (XIX of 2019 ), published in the Punjab Gazette 
(Extraordinary), dated: 26th November 2019, pp. 1671-1672, s.6. 
 
 
(11) The Chairman and members of the Local Zakat and Ushr Committee 
shall hold office for a term of three years and shall not be eligible to hold office for 
more than two consecutive terms.  
(12) The District Zakat and Ushr Committee may, subject to notice and for 
reasons to be recorded in writing, remove the Chairman or a member of a Local 
Zakat and Ushr Committee from his office on account of misconduct  under intimation 
to the Council. 
 (13) The Chairman or a member ma y, by writing under his hand addressed 
to the District Zakat and Ushr Committee, resign his office. 
 (14) The Chairman or the member shall continue to hold office until his 
resignation is accepted by the District Zakat and Ushr Committee. 
 (15) Any vacancy  in the office of Chairman or member shall be filled by 
election or selection of a person qualified to hold the office, in accordance with the 
provisions of this section, and such person shall hold office for the unexpired term of 
his predecessor.  
 (16) Any adult Muslim resident of a locality, aggrieved by the conduct or the 
result of the proceedings for the selection of the members, or the election of the 
Chairman of the Local Zakat and Ushr Committee, may, within 30 days, prefer an 
appeal to the District Zakat and Ushr Committee. 
(17) The District Zakat and Ushr Committee shall not grant any injunction or 
make any interim order, including a restraining order, during the pendency of an 
appeal. 
(18) The District Zakat and Ushr Committee to which an appeal u nder 
subsection (16) is preferred shall decide the appeal within such time as may be 
prescribed; and, the decision of the District Zakat and Ushr Committee shall be final 
and shall not be called in question before any court or other authority. 
(19) The Local Zakat and Ushr Committee shall, subject to such guidelines 
as may be given by the Council and the District Zakat and Ushr Committee: 
(a) determine istehqaq separately for: 
(i) subsistence allowance; 
(ii)  rehabilitation, either directly or indirectly through an institution;  
(iii) treatment through public hospitals, charitable institutions or any 
other institutions providing healthcare; and 
(iv) any other purpose as may be permitted by Shariah; 
(b) prepare and maintain accounts of the Local Zakat Fund in  such form 
and manner as may be prescribed; and 
(c) tender to the District Zakat and Ushr Committee advice on any matter 
connected with the collection, disbursement and utilization of Zakat, 
Ushr and atiyyat.  
16. Vacancy or defect not to invalidate procee dings.– Notwithstanding 
anything contained in the Act, an act or proceedings of the Council, a District Zakat 
and Ushr Committee, or a Local Zakat and Ushr Committee shall not be invalid by 
 
 
reason only of the existence of a vacancy or defect in the constit ution of the Council 
or the Committee. 
17. Members of Council and Committees to be Muslims .– The Chairmen and 
members of the Council, a District Zakat and Ushr Committee,  and a Local Zakat 
and Ushr Committee shall be Muslims and where an ex-officio member is a non -
Muslim, the Government shall nominate a Muslim member in his place. 
18. Person to preside at meetings in the absence of Chairman .– (1) If the 
office of the Chairman of the Council is vacant or the Chairman is unable to attend a 
meeting, Minister for Zakat and Ushr and, in his absence, the Chief Administrator 
shall preside over the meeting. 
(2) If the office of the Chairman of a District Zakat and Ushr Committee is 
vacant or the Chairman is unable to attend a meeting, the Deputy Commissioner or 
any other officer notified under subsection (13) of section 14 shall preside over the 
meeting. 
(3) If the office of the Chairman of a Local Zakat and Ushr Committee is 
vacant or the Chairman is unable to attend a meeting, the meeting shall be presided 
over by the member elected by the members present. 
19. Power of removal.– (1) If the Council, in the case of a District Zakat and Ushr 
Committee and the District Zakat and Ushr Committee in the case of a Local Zakat 
and Ushr Committee is of the opinion that a committee constituted under the Act: 
(a) is unable to discharge or persistently fails in discharging its duties; or 
(b) is unable to administer its affairs; or 
(c) acts in a manner contrary to public interest; or 
(d) exceeds or abuses its powers; or 
(e) has a  majority of members who are involved in anti -Islamic or anti -
State activity – 
the Council, in case of District Zakat and Ushr Committee, and District Zakat and 
Ushr Committee in case of a Local Zakat and Ushr Committee may, by a notification, 
dissolve the Committee. 
(2) When a District Zakat and Ushr Committee or the Local Zakat and 
Ushr Committee is dissolved under subsection (1), the functions of the Committee 
shall be performed by an Administrator appointed by the Council or, as the case may 
be, the Dis trict Zakat and Ushr Committee, until the Committee is reconstituted 
under the Act but the Council or  the Committee shall constitute the Committee within 
ninety days from the date of the dissolution under subsection (1). 
(3) If the  Council, in case of Dist rict Zakat and Ushr Committee, and 
District Zakat and Ushr Committee in case of a Local Zakat and Ushr Committee is 
of the opinion that the Chairman or a member of the Committee constituted under 
the Act: 
(a) has, without reasonable excuse, absented himsel f from three 
consecutive meetings of the Committee; 
 
 
(b) has been guilty of abuse of power or of misconduct in the discharge of 
his duties as Chairman or member, or been responsible for any loss or 
misapplication, misappropriation, or misuse of any money or  property 
of the Committee; and 
(c) has become physically disabled or unable on any account from 
performing functions as Chairman or member, 
the Council, in case of District Zakat and Ushr Committee, and District Zakat 
and Ushr Committee, in case of a Loca l Zakat and Ushr Committee may, by a 
notification, remove from office such Chairman or the member. 
(4) If, after such inquiry as may be considered necessary, the Council, in 
case of District Zakat and Ushr Committee, and District Zakat and Ushr Committee, in 
case of a Local Zakat and Ushr Committee, is of the opinion that the Chairman or a 
member of the Committee, or an employee assigned to work with a Committee, or an 
institution receiving Zakat under the Act, is  guilty of misconduct in the discharge of 
duties, or is responsible for the loss, misapplication or misuse of Zakat, the Council or 
District Zakat and Ushr Committee may initiate criminal or other appropriate 
proceedings against such Chairman, member, person or institution. 
Explanation.– For purpos es of subsection (3) and subsection (4),  the expression 
“misconduct” means bribery, corruption, jobbery, favoritism, nepotism, willful 
maladministration or willful diversion of funds and shall include an attempt or 
abetment of such misconduct. 
(5) When a C hairman or a member of a Committee is removed from, or 
otherwise ceases to hold office, the vacancy shall be filled within such time as the 
Council may determine, by election, selection or, as the case may be, nomination in 
accordance with the provisions of the Act, of a person qualified to hold the office. 
(6) The Chairman or member elected, selected or nominated under 
subsection (5) shall hold office for the unexpired term of his predecessor. 
(7) The Council may delegate to the Chief Administrator any of its powers 
and functions under the preceding provisions of this section in respect of a District Zakat 
and Ushr Committee or a Local Zakat and Ushr Committee.  
(8) The Chairman or a member of the Council or a Committee removed 
under subsection (1) or subse ction (3) may, within such time and in such form and 
manner as may be prescribed, apply to the Council for a review of its decision and the 
decision of the Council on such review, after giving to the applicant an opportunity of 
being heard, shall be final and shall not be called in question before any court or other 
authority. 
20. Vote of no confidence .– (1) Where in case of a Local Zakat and Ushr 
Committee, the District Zakat and Ushr Committee, after such enquiry as it may 
deem fit, is of the opinion that  the members of the Local Zakat and Ushr Committee 
no longer have confidence in the Chairman, the District Zakat and Ushr Committee 
may, in the prescribed manner, remove the Chairman from his office. 
(2) Where in case of a member of a Local Zakat and Ushr Committee or of a 
Local Zakat and Ushr Committee as a whole, the District Zakat and Ushr Committee 
after such enquiry as it may deem fit, is of the opinion that the adult Muslim residents of 
the locality no longer have confidence in a member or in the Committee as a whole, the 
 
 
District Zakat and Ushr Committee may, in the prescribed manner remove the member 
from his office or dissolve the Committee as a whole.  
(3) The vacancy in the office of a Chairman or a member so caused shall 
be notified by the Distri ct Zakat and Ushr Committee and filled in accordance with 
the provisions of the Act. 
21. Certain persons to be public servants .– Every person engaged in, or 
employed for, the administration of the Act, shall be deemed to be a public servant 
within the meaning of section 21 of the Pakistan Penal Code, 1860 (XLV of 1860). 
Explanation.– For purposes of this section, the Chairman and members of Council, 
a District Zakat and Ushr Committee, a Local Zakat and Ushr Committee and the 
Chief Administrator shall be the persons engaged in the administration of the Act. 
22. Chairmen and members to act on honorary basis .– The Chairmen and 
members of the Council, a District Zakat and Ushr Committee, and a Local Zakat 
and Ushr Committee shall perform their functions under the Act on honorary basis. 
CHAPTER VI 
MISCELLANEOUS 
23. Power to make rules .– The Government may, by notification in the official 
Gazette, make rules for carrying out the purposes of the Act. 
24. Power to call for information and issue directions .– The Government, the 
Council, a District Zakat and Ushr Committee, or a Local Zakat and Ushr Committee 
may, within its jurisdiction, call for such information or record from, and issue such 
directions to, the concerned persons or agencies as may be necessary for th e 
performance of its functions under the Act. 
25. Indemnity and bar of jurisdiction .– (1) No suit, prosecution or any other 
legal proceeding shall lie against any person for anything, done or intended to be 
done, in good faith, under the Act or the rules. 
(2) No court shall call in question, or permit to be called in question, 
anything done or any action taken under the Act or the rules. 
(3) No court shall grant any injunction or make any order, nor shall 
entertain any proceedings, in relation to any action  taken or anything done or 
intended to be taken or done under the Act or the rules. 
26. Removal of difficulties.– The Government may, by order passed within one 
year of the commencement of the Act, make such provisions as may be necessary to 
remove any difficulty in carrying out the purposes of the Act. 
27. Repeal, succession and savings.– (1) The Zakat and Ushr Ordinance, 1980 
(XVIII of 1980) is hereby repealed. 
(2) Notwithstanding the repeal of the Zakat and Ushr Ordinance, 1980 
(XVIII of 1980): 
 
 
(a) the Council shall succeed all assets and liabilities of the Central Zakat 
Council and the Punjab Zakat and Ushr Council established or constituted 
under the repealed Ordinance; 
(b) a District Zakat and Ushr Committee and a Local Zakat and Ushr 
Committee shall succeed all assets and liabilities of the District Zakat 
and Ushr Committee and the Local Zakat and the Ushr Committee 
constituted under the repealed Ordinance; 
(c) the Punjab Zakat and Ushr Council, the District Zakat and the Ushr 
Committees and the Local Zakat and Ushr Committees constituted 
under the repealed Ordinance shall be deemed to have been 
constituted under the Act; and 
(d) any action or proceedings taken under the repealed Ordinance or the 
rules made thereunder shall be deemed to have been taken under the Act 
in so far as they are not inconsistent with the provisions of the Act. 
 
 
 
FIRST SCHEDULE 
(see section 2 and section 4) 
ASSETS SUBJECT TO COMPULSORY LEVY OF ZAKAT THROUGH 
DEDUCTION-AT-SOURCE FOR CREDIT TO THE PROVINCIAL ZAKAT FUND 
Sr. 
No. 
Assets Rate and basis for 
computing the 
amount to be 
deducted as Zakat 
Deduction 
Date 
Deducting 
Agency 
1. Savings Bank 
Accounts and similar 
accounts by whatever 
name described with 
the Banks, Post 
Offices, National 
Savings Centers and 
Financial Institutions 
keeping such 
accounts and 
operating in the 
Punjab. 
2.5% of the amount 
standing to the credit of 
an account at the 
commencement of the 
day on the valuation 
date. No deduction 
shall be made in case 
the amount standing to 
the credit of an account 
does not excee d the 
amount of nisab as 
notified by the Chief 
Administrator Zakat. 
As notified by 
the Chief 
Administrator 
Zakat for the 
Zakat year. 
The Bank, 
Office, 
Centre or 
institution, 
as the case 
may be, 
keeping the 
account. 
2. Notice Deposit 
Receipts and 
Accounts and similar 
receipts and accounts 
by whatever name 
described with the 
banks, Post Offices, 
National Savings 
Centres and financial 
institutions issuing 
such receipts and 
keeping such 
accounts and 
operating in the 
Punjab. 
2.5% of the face value 
of a receipt or the 
amount standing to the 
credit of an account, as 
the case may be, at the 
commencement of the 
day on the valuation 
date, in each Zakat 
year.  
The date on 
which the first 
return is paid 
or the date of 
encashment/ 
withdrawal, 
whichever be 
earlier in the  
Zakat year. 
The bank, 
office, 
Centre or 
institution, 
as the case 
may be, 
issuing the 
receipt or 
keeping the 
account and 
responsible 
for paying 
the return or 
the amount 
encashed/ 
withdrawn.  
 
 
3. Fixed Deposit 
Receipts and 
Accounts and similar 
receipts and accounts 
and certificates (e.g. 
Khas, Deposit 
Certificates), by 
whatever name 
described, issued by 
the banks, Post 
Offices, National 
Savings Centers and 
financial institutions, 
on which the return is 
receivable by the 
holder periodically or 
is received ear lier 
than maturity or 
withdrawal and 
operating in the 
Punjab.  
2.5% of the face value 
of a receipt or a 
certificate, or the 
amount standing to the 
credit of an account, as 
the case may be, as at 
the commencement of 
the day on the 
valuation date, in each 
Zakat year. 
The date on 
which the first 
return is paid, 
or the date of 
encashment / 
redemption/ 
withdrawal, 
whichever be 
earlier in the 
Zakat year. 
The bank, 
office, 
centers or 
institutions, 
as the case 
may be, 
issuing the 
receipt or 
certificate or 
keeping t he 
account, and 
responsible 
for paying 
the return or 
encashment/ 
redemption/ 
withdrawal.  
4. Savings/deposit 
certificates (e.g. 
Defense Savings 
certificates, National 
Deposit Certificates), 
receipts and accounts 
by whatever name 
described, issued or 
kept by the banks, 
Post Offices, National 
Savings Centers, 
financial institutions, 
companies and 
statutory corporations 
on which return is 
receivable and is 
received, by the 
holder, only on 
maturity or 
encashment and 
operating in the 
Punjab.   
2.5% of the payab le 
value of certificates or 
receipts or the amount 
standing to the credit of 
an account, as the 
case may be, as on the 
valuation date.  
The date on 
which the 
maturity 
value is paid, 
or of 
encashment/ 
with-drawl. 
The bank, 
office, 
centre, 
company, or 
corporation, 
as the case 
may be, 
responsible 
for paying 
the return or 
the amount 
withdrawn, 
or 
redeeming, 
encashing 
the 
certificates 
or receipts. 
5. Units of the National 
Investment (Unit) 
Trust.  
2.5% of the face value 
or repurchase value of 
the Units, whichever be 
lower, as on the 
valuation date, in each 
Zakat year. 
The date on 
which the first 
return or the 
repurchase 
value is paid, 
whichever be 
The Trustee 
of the 
National 
Investment 
(Unit) Trust 
or its 
 
 
earlier, in the 
Zakat year. 
authorized 
agent paying 
the r eturn 
on, or the 
repurchase 
value of the 
Units. 
6. I.C.P. Mutual Fund 
Certificates. 
2.5% of the face value, 
or the market value 
based on the closing 
rate at the Stock 
Exchanges, whichever 
be lower, as on the 
valuation date, in each 
Zakat year.   
The date on 
which the first 
return is paid 
in the Zakat 
year. 
The 
Investment 
Corporation 
of Pakistan. 
7. Government securities 
(other than prize 
bonds and certificates 
mentioned at serial 
number 3 and 4) on 
which the return is 
receivable by the 
holder periodically.  
2.5% of the face value 
of the Government 
securities as on the 
valuation date, in each 
Zakat Year. 
The date on 
which the first 
return is paid 
or the date of 
encashment/ 
redemption, 
whichever be 
earlier, in the 
Zakat year.  
The bank, 
office or 
institution, 
as the case 
may be, 
responsible 
for paying 
the return or 
encashing/ 
redeeming 
the security. 
8. Securities including 
shares and 
debentures (other 
than those mentioned 
at serial numbers 5, 6 
and 7 above), of 
companies or 
statutory corporations 
excluding t hose held 
in the name of a 
company or a 
statutory corporation, 
on which the return is 
payable periodically or 
otherwise, and is paid.  
If listed on the stock 
exchange, 2.5% of the 
paid-up value, or the 
market value based on 
the closing rate at the 
Stock Ex changes, 
whichever be lower, as 
on the valuation date, 
in each Zakat year. If 
not listed on the stock 
exchange 2.5% of the 
paid-up value on the 
valuation date, in each 
Zakat year. 
The date on 
which the first 
return is paid, 
or the date of 
encashment 
or 
redemption, 
whichever be 
earlier, in the 
Zakat year. 
The 
corporation, 
company or 
institution, 
as the case 
may be, 
responsible 
for paying 
the return or 
encashing/ 
redeeming 
the security. 
9. Annuities. 2.5% of the amount of 
annuity benefit in each 
Zakat year and, in case 
of surrender, 2.5% of 
the surrender value on 
the valuation date, as 
the case may be. 
The date of 
first payment 
of the annuity 
benefit and of 
the surrender 
value. 
The insurer 
or the bank, 
institution or 
the 
organization 
keeping the 
amount in 
 
 
the form of 
an annuity. 
10. Life insurance 
policies. 
2.5% of the surrender 
value as on the 
advance date in the 
Zakat year in which the 
policy matures or its 
survival benefit or 
surrender value is paid, 
as the case may be.   
The date of 
payment of 
(maturity 
value) or of 
survival 
benefit or of 
surrender 
value. 
The insurer. 
11. Provident funds. In case of non -
refundable advance, 
2.5% of the amount 
drawn or, in case of 
final settlement, 2.5% 
of the balance standing 
to the credit of the 
subscriber as on the 
valuation date, 
excluding in both cases 
the employer’s 
contribution and the 
return accrued thereon. 
The date of 
payment of 
the advance 
or of the 
balance. 
The 
authority, 
officer or 
institution, 
making 
payment of 
the advance 
or of the 
balance. 
 
 
 
 
SECOND SCHEDULE 
[see sections 2, 4 and 5] 
ITEMS NOT SUBJECT TO COMPULSORY LEVY OF ZAKAT BUT ON WHICH 
ZAKAT IS PAYABLE BY EVERY SAHIB-E-NISAB ACCORDING TO THE 
RELEVANT NISAB, ON SELF-ASSESSMENT BASIS, EITHER TO A ZAKAT 
FUND OR TO ANY INDIVIDUAL OR INSTITUTION ELIGIBLE, UNDER THE 
SHARIAH, TO RECEIVE ZAKAT 
Sr. 
No. 
Items Rate and Basis for Self-assessment 
1. Gold and silver and 
manufactures thereof. 
2.5% of the market value as on the 
valuation date. 
2. Cash. 2.5% of the amount as on the valuation 
date. 
3. Prize Bonds. 2.5% of the face value as on the valuation 
date. 
4. Current Accounts and foreign 
currency accounts and to the 
extent not subject to compulsory 
levy of Zakat under First 
Schedule, other accounts, 
certificates, receipts, Units of 
National Investment (Unit) Trus t, 
Mutual Funds Certificates,  
Government securities, 
annuities, Life Insurance 
Policies and Provident Funds.    
2.5% of the value of the asset, as on the 
valuation date. 
5. Loans receivable excepting 
loans receivable by banks, other 
financial institution s, statutory 
corporations and companies. 
2.5% of the amount of loan receivable as 
on the valuation date. 
6. Securities including shares and 
debentures, to the extent not 
subject to compulsory levy of 
Zakat under First Schedule. 
If listed on the stock exch anges, 2.5% of 
the market value i.e. the closing rate as on 
the valuation date. 
If not listed on the stock exchange, 2.5% of 
the paid-up value as on the valuation date. 
7. Stock in trade of: 
(a) Commercial undertakings 
including dealers in real 
estate 
(b) Industrial undertakings 
(a)  2.5% of the book value or at the 
option of sahib -e-nisab, the market 
value as on the valuation date 
(b) 2.5% of the book value or at the 
option of the sahib -e-nisab, the 
market  value  of raw   materials and 
finished goods as on the valuation 
date 
 
 
 (c) Precious metals and stones 
and manufactures thereof 
(c) 2.5% of the market value as on the 
valuation date  
(d) Fish and other catch/ 
procedure of the sea, except 
catches by indigenous 
techniques. 
(d) 2.5% of the value, as on the 
valuation date.  
8. Agricultural including 
horticultural and forest produce: 
(a) Tenant’s share. 
 
 
(a) (i) 10% of the produce, as on 
 the valuation date, in the 
 barani area; and  
(ii) 5% of the produce, as on the 
valuation date, in the non -
barani area; 
(b) Other than the tenant’s 
share. 
(b) (i) 5% over and above the 
 compulsory 5% in the barani  
 area, as on the valuation 
date; and  
 (ii) one-fourth of the value of 
 produce allowed as an 
 allowance for expenses on 
 production. 
9. Animals (fed free in pastures) 
(a) Sheep or goat. 
As on the valuation date: 
(a) (i) for owners of one to 39 
 heads: nil; 
(ii) for owners of 40 to 120 
heads: one sheep/goat; 
(iii) for owners of 121 to 200 
heads: two sheeps/goats; 
(iv) for owners of 201 to 399 
heads: three sheeps/ goats; 
and 
(v) for owners of every complete 
additional hundred heads: 
one sheep/ goat. 
. (b) Bovine Animals. (b) (i)   for owners of one to 29 heads: nil; 
(ii)  for owners of 30 to 39 heads: one 
calf between one year and two 
years old; 
(iii)  for owners of 40 to 59 head s: one 
calf between two years and three 
years old; 
 
 
(iv)  for owners of 60 to 69 heads: two 
calves between one year and two 
years old; 
(v)  for owners of 70 to 79 heads: one 
calf between one year and two 
years old and one between two 
years and three years old; 
(vi) for owners of 80 to 89 heads: two 
calves between two years and 
three years old; and  
(vii) for owners of 90 to 99  heads: three 
calves between one year and two 
years old; and 
(viii) for owners of 100 and above 100 
heads: as in shariah. 
(c) Camels. (c) (i) for owners of one to 4 
 heads: nil. 
(ii) for owners of 5 to 24 heads: 
one sheep/goat for every five 
heads. 
(iii) for owners of 25 to 35 heads: 
one she -camel between one 
year and two years old. 
(iv) for owners of 36 to 45 heads: 
one she -camel between two 
years and three years old. 
(v) for owners of 46 to 60 heads: 
one she -camel between four 
years and five years old. 
(vi) for owners of 61 to 75 heads: 
two she-camels between two 
years and three years old. 
(vii) for owners of 76 to 90 heads: 
two she-camels between two 
years and three years old. 
(viii) for owners of 91 to 120 
heads: two she -camels 
between three years and four 
years old. 
(ix) for owners of more than 120 
heads: as in Shariah. 
10. Wealth and financial assets 
other than those listed in 
Schedule on which Zakat is 
payable according to Shariah. 
As per Shariah.