Zakat Disbursement

Disbursement of Zakat

Zakat can be utilized for the following according to the Section 9 of Zakat and Ushr Act, 1985 and other policies approved by the Azad Kashmir Zakat Council on the subject:

  1. Assistance of the needy, indigent and the poor Orphans and Widows through personal ledger accounts according to the Istehqaq by the local Zakat Committee.
  2. Handicapped and the Disabled through Chief Administrator
  3. Residential Students of Deeni Madaris
  4. Students of Vocational Educational Institutions through institutions
  5. Deserving patients at Public Hospitals/ Clinics, Dispensaries/ Health Laboratories through CMH / AIMS / DHQ /RHC and BHU
  6. Providing Artificial Limbs
  7. Aid to deserving families to marry their daughters

 

ZAKAT AUDIT POLICY

INTERNAL AUDIT

  1. To carry out audit of the Local Zakat funds within a district the Zakat Council has setup Audit Cell. Audit Cell is headed by an Audit Officer
  2. The annual reports of the auditors of the Azad Kashmir Zakat funds is presented before the Legislative assembly (Public Accounts Committee)
  3. The reports of the District Audit Cell about the Local Zakat funds are presented before the Zakat Council
  4. Council examines the Audit reports and decides the future payments or freezing of funds through Chief Administrator
  5. Chief Administrator issues the program for the internal checking/ auditing for the allocated funds to the institutions and sub ordinate offices by the officers of the Zakat and Ushr Directorate
  6. Zakat department has introduces New Audit Policy 2019 for internal Audit.

 

EXTERNAL AUDIT

  1. Auditor General of Azad Kashmir performs the audit of Zakat Funds (Through Local Audit Fund Department)
  2. The Audit reports of the Zakat Fund is presented before the Legislative Assembly where it is studied by the PAC for the findings of objections and necessary actions are directed
  3. Departmental audit reports are presented for DAC headed by the Secretary Zakat on same pattern like PAC for action

 

CALCULATING ZAKAT

For those assets on which Zakat is payable on compulsory basis according to the Section 2 (xvii) of the Zakat and Ushr Act, 1985 are given in Schedule 1. On such assets, the duty of calculating Zakat according to Nisab on the deduction date i.e., "First Ramazan Ul Mubarik" rests on the concerned Financial Institution (Deducting Agency) concerned as the rate and basis for the calculations are specified. For this purpose, First Ramazan Ul Mubarik deemed to be a Public holiday for banks only however banks remain open for their employees and perform duty of Zakat deduction for asset mentioned at serial No. 1 i.e. Saving bank accounts. For the assets that are mentioned from serial No. 2 to 10 the deduction date is considered to be the day of enmeshment or withdrawal as the case may be. Example of common assets are Life Saving Policies and Saving and deposit schemes

  1. Zakat is deducted from every Sahib-e-Nisab who owns or possesses such assets as mentioned in Schedule 1 of Act on the Valuation Date
  2. Nisab defined in relation to assets liable to Zakat means:
  3. 32 grams of silver or equivalent cash or gold or Goods for trade or any assets liable to Zakat under Shariah, As notified by the Chief Administrator Zakat for each Zakat year on valuation date (i.e. 1st of Ramadan-ul-Mubarak)
  4. Nisab for current year 1439-40 A. H. is Rs. 44,415/-

 ZAKAT CALCULATION AND COUNTING ON SELF ASSESSMENT BASIS

Complete detail of items not subject to compulsory levy of Zakat but on which Zakat is however payable by every Sahib-e-Nisab according to the relevant Nisab, on self-assessment basis is given in Schedule 2 of the Zakat and Ushr Act, 1985. For these items it is the duty of Sahib-e-Nisab to calculate payable amount of Zakat according to the value of asset. Such assets may include gold, silver or cash at home. Animals food items are also included in such type of assets on which Zakat is payable. For this purpose, it is the duty of Sahib-e-Nisab to count animals and then he can pay the amount of pay able Zakat in currency form to AJK Zakat Fund. Complete list and manners for payment are available in Second Schedule to Zakat and Ushr Act, 1985.