Zakat – Case Study Example
Sir Thanks. I have been using the calculator and it is very helpful. One aspect that I would like to clarify is regarding salary income which attracts 10% zakat in the first instance and then if there are any savings from that salary leads to wealth on the assigned day of zakat calc( assume above nisab). I have been using the wealth basis for zakat payment at 2.5% and nothing on the salary assuming that after expenditure the net savings are included in the zakat pool. I would like to confirm this because according to this I will need to treat gross income at 10% (offset by any taxes)and then wealth at 2.5% ( will include residual from zakat paid income). Please confirm if my understanding is correct.
I think that you might be overthinking this. Quite simply, you owe 10% on your salary when you receive it. Then on the day your zakat is due once a year, you owe 2.5% on the current value of all of your assets, regardless of how you acquired them.