Zakat is an important religious obligation in Islam, but not all types of wealth are subject to compulsory Zakat deduction by banks. In Pakistan, the government deducts Zakat automatically from certain bank accounts every year on the 1st of Ramadan. However, if your account or funds are Zakat-exempt, you must submit a Zakat Declaration Form (CZ-50) to your bank to avoid automatic deduction.
This article explains what CZ-50 is, who should submit it, how to fill it out correctly, and how to submit it at Pakistani banks, in a simple and detailed manner.
What is the Zakat Declaration Form (CZ-50)?
The CZ-50 form is an official declaration under the Zakat & Ushr Ordinance, 1980. By submitting this form, an account holder declares that:
- Their account balance or funds are not liable to compulsory Zakat deduction, or
- They belong to a Fiqh (Jurisprudence) where Zakat is calculated differently, or
- They personally manage and pay their Zakat without bank deduction
- Once accepted, the bank stops automatic Zakat deduction from that account.
Who Should Submit the CZ-50 Form?
You should submit the CZ-50 form if you fall under any of the following categories:
- You belong to Fiqh-e-Jafria (Shia)
- Your account holds Zakat-exempt funds, such as:
- Pension accounts
- Provident fund balances
- Foreign currency accounts (in some cases)
- You want to pay Zakat yourself instead of bank deduction
- You have Islamic views that require self-assessment of Zakat
If you do not submit CZ-50, Zakat may be deducted automatically on the 1st of Ramadan if your balance exceeds Nisab.
Types of Bank Accounts Subject to Zakat Deduction
Zakat is usually deducted from:
- Savings accounts
- Profit & Loss Sharing (PLS) accounts
- Term deposits (fixed deposits)
- Investment accounts
Zakat is not deducted from:
- Current accounts
- Loan accounts
- Some foreign currency accounts (subject to bank policy)
When Should You Submit the CZ-50 Form?
Timing is very important.
- Submit before the 1st of Ramadan
- Most banks announce a cut-off date (usually 10–15 days before Ramadan)
- Late submission means Zakat will be deducted automatically
Best practice: Submit the form every year, even if you submitted it before.
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Where to Get the CZ-50 Form?
You can obtain the CZ-50 form from:
- Your bank branch
- Bank’s official website (some banks)
- Zakat department counter (rare cases)
You can also download the CZ-50 form here. Banks usually provide the form free of cost.
Now let’s learn how to fill the Zakat Declaration Form (CZ-50) – Step-by-Step:
1. Name of the Bank & Branch
Write:
- Bank name (e.g., HBL, UBL, Meezan Bank)
- Branch name and branch code
Ensure it matches the branch where your account is maintained.
2. Account Holder’s Name
- Write your full name
- It must match your CNIC and bank records
Avoid nicknames or abbreviations.
3. Account Number(s)
- Write all account numbers you want to be exempted
- If you have multiple accounts, list each one clearly
Some banks require separate forms per account, so confirm with your branch.
4. CNIC / NICOP Number
- Enter your 13-digit CNIC number
- Ensure it is valid and not expired
An incorrect CNIC can lead to rejection.
5. Religious School of Thought (Fiqh)
This is the most critical section.
You will declare:
- Fiqh-e-Jafria, or
- Other valid reason for exemption (as applicable)
Tick or write clearly as per the form instructions.
6. Declaration Statement
Read the declaration carefully. It states that:
- You are legally responsible for this declaration
- A false declaration may lead to legal consequences
- You will manage Zakat yourself
Do not skip reading this section.
7. Signature & Date
- Sign exactly as per the bank records
- Mention the date of submission
Unsigned forms are automatically rejected.
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How to Submit the CZ-50 Form in Banks (Procedure)
Follow these steps to submit the form correctly:
Step 1: Visit Your Bank Branch
Go to the home branch where your account is maintained.
Step 2: Submit the Filled Form
Hand over the completed CZ-50 form to:
- Customer service desk, or
- Account officer
Step 3: CNIC Verification
Some banks may:
- Ask for the original CNIC
- Keep a photocopy for records
Step 4: Get Acknowledgment
Always request:
- Receiving a stamp on a copy, or
- Written confirmation in the system
This protects you in case of deduction disputes.
Is CZ-50 Valid for Life?
No.
- CZ-50 is generally valid for one year
- Many banks require an annual submission
- Some banks may allow long-term validity, but still recommend yearly confirmation
Submit every year to stay safe.
Common Mistakes to Avoid
- Submitting after Ramadan starts
- Incomplete account numbers
- Missing signature
- CNIC mismatch
- Assuming the previous year’s form is still valid
Even a single mistake can trigger automatic Zakat deduction.
What If Zakat Is Deducted by Mistake?
If Zakat is deducted despite submitting CZ-50:
- Visit your bank immediately
- Submit:
- Copy of CZ-50
- CNIC copy
- File a refund request
Refunds are possible but may take time.
Final Advice
- Submit CZ-50 before Ramadan every year
- Fill the form carefully and clearly
- Keep a stamped copy for the record
- Confirm acceptance with your bank
Submitting the Zakat Declaration Form (CZ-50) on time ensures peace of mind, financial clarity, and compliance with both religious beliefs and banking regulations in Pakistan.
