Ushar Percentage Of Crops And Case Of Loss
Zakat becomes due immediately on the gross production as soon as the production occurs. The lease amount of land being a substantial expense in maintaining/sustaining the means of production (i.e. Land ) can be deducted from gross production value. The remaining value of production would be subject to 5% of Zakat, since both labor/maintenance expenses and capital are being expended; but if either labor/maintenance expenses or capital are expended then 10% Zakat would be applicable. This Zakat is payable only if the production value ( which is subject to Zakat calculation ) is equal to or above Nisab Threshold which in case of production/earnings is the minimum amount below which your state exempts tax or zakat on production/earnings. If your state does not provide a nisab then you can use the standard nisab of 653 kg of Dates or equivalent value. Detailed Law of Zakat can be read in the following response: Discussion 58129 • Reply 58137 As for losses , two points must be kept in mind: i ) Taxes paid to the Government can be adjusted against Zakat Obligation. This includes all forms of taxes including income tax, sales tax etc. ii ) If one is still not in a position to Pay Zakat obligation because of a net loss then Zakat obligation would be waived and one should do Charity to the best of their ability. Please also refer to the video below from 23:45 to 26:55 https://youtu.be/AhtsALu32_k?t=1425