Submission of Declaration on CZ50 for Non Deduction of Zakat – AG dt 16.03.2012
OFFICE MEMORANDUM
Subject:
Instances have come to the notice of this office that the subscribers to G.P. Funds are not well aware of provisions of Law regarding deduction of Zakat at Source on G.P. Fund balance and exemption through declaration for non deduction of Zakat at Source. Accountant General has desired that for public/subscriber’s convenience, necessary guidelines/clarification may be issued to the all Heads of the Administrative Departments for circulation thereof amongst their employees/subscribers to G.P.Fund.
2. As per provision of Zakat & Usher Ordinance 1980 read with Ministry of Religious Affairs, Zakat & Usher, Government of Pakistan’s clarification No. 28- R/350/2006/1607, dated 20-10-2006, deduction on Zakat at Source on withdrawal of non refundable advance from G.P. Fund account or final payment therefrom on retirement is required to be deducted from every subscriber to G.P. Fund except those who claim exemption for non deduction of Zakat at Source on G.P. Fund through submission of declaration on CZ-50 during Zakat year, 30 days before valuation date of 1 Ramzan-ul-Mubarik. Declaration for non deduction of Zakat submitted later than 30 days of the valuation date. i.e. 1″ Ramzan-ul-Mubarik of the Zakat Year during which final payment of G.P. Fund or non-refundable advance is being withdrawn is not maintainable as per Law.
3. It is further added that the subscribers approach this office with a Declaration prepared by them before the valuation date but not submitted to the Accounts Office concerned before 30 days of the valuation date. In such a case the Declaration is also not maintainable because the condition for submission of the same to the concerned Accounts Office before 30 days of the valuation date is must according to Law.
Subscribers/ employees may be advised to submit their Declaration for non deduction of Zakat in case they want to claim exemption from deduction of Zakat from G.P.Fund balance 30 days before the valuation date i.e. 14 Ramazan-ul-Mubarik of the Zakat year to the concerned Accounts Office and get acknowledgement /diary No. thereof as a documentary evidence to avoid subsequent hardship.
This is issued with the approval of the Accountant General.
Copy forwarded for information and compliance with the direction to the fact that they should maintain proper Register for recording the Declarations received from the Subscribers under proper Diary number date /name/address for the purpose of cross checking/verification at the time of Final Payment/ Non Refundable GPF payment cases.
