Zakat On Service Sector
Hopefully following response will help you understand the law of Zakat with much clarity. In case of any confusion, please feel free to ask a follow-up question: Discussion 58129 • Reply 58137 Following points specific to your case are important to mention here: – The Zakat on production ( earning ) becomes due as soon as that earning happens and it is due on gross earning. However, one can calculate it on yearly gross earning and can pay it in installments as well. You can use tax exemption of 2.5 lacs as Nisab for earning and calculate the zakat on yearly gross receipts ( on the amount above 2.5 lacks exemption ). – The only expenses that can be deducted from gross receipt are those which are incidental to that particular form of earning and are substantial in maintaining that particular form of earning ( For Details : Discussion 50336 • Reply 50354 ).