Zakat On Salary And Kids Welfare Amount
Asslamualikum Shoaib sb. See if this clarifies your confusion. Please do let us know in case of any confusion. Here is law of zakah summarized: You can calculate Zakah in the following manner: 1. Fix any one day of the year for the calculation of Zakah. On all subsequent years, Zakah should be calculated on this day. 2. Subtract the value of 642 grams of silver from your total wealth on this particular day which includes value of your jewelry not for personal use, value of other assets which are not of personal use (your personal house, jewelry for personal use and car are examples of assets in personal use). [1] & [2] 3. 2 1/2 % of this amount is the Zakah to which you are liable. In case you are a salaried person you should also pay 10 % [3] & [4] of your salary every time you receive it. You can deduct the amount the government has fixed as exemption to salaried persons and then pay the said percentage of the remaining amount as Zakah. Remember, if it is not possible to pay your Zakah money in one go you can pay in installments as well. 4. Since Zakah is the only tax which a government can impose on its citizens, you can deduct other taxes that you have paid from your Zakah amount. If the balance is negative you do not have to pay Zakah. ___________________________ [1] Nothing except the tools of production, personal items of daily use and a fixed quantity called nisab are exempt from zakah. It shall be collected annually on wealth of all sorts, livestock of all types and produce of all forms of every Muslim citizen who is liable to it. [2] This nisab is as follows: (a) Wealth: 5 uqiyahs / 642 grams of silver (b) Produce: 5 wasaqs / 653 kilograms of dates (c) Livestock: 5 camels, 30 cows, 40 goats [3] If the basis of the Sunnah established in Zakah is taken into consideration, production of all forms based on various skills must be classified as produce and not as wealth; therefore, its rates and nisab should be those specified by the Prophet (sws) for land produce. [4] Produce: (i) 5% : on all items which are produced by the interaction of both labor and capital, (ii) 10% on items which are produced such that the basic factor in producing them is either labor or capital and (iii) 20% in items which are produced neither as a result of capital nor labor but actually are a gift of God.