Zakat Exemptions On Salary After Planned Expenditure
1) . Taxation should not be confused as equivalent to Zakat in every matter. Since it is something enforced by the state on its citizens instead of Zakat, therefore some adjustments are done as an ijtihad because of certain commonalities until proper Zakat system is implemented at state level, for instance, adjustment of taxes paid against Zakat obligation and using tax slab for salaried individuals in order to determine Nisab for production Zakat resulting out of Salary or for some other heads of Zakat because the ‘ illat ‘ for such tax slabs is same as that of Zakat i.e. minumim amount equivalent to basic needs of an individual should not be taxed/subject to Zakat . Zakat is the right of a society on an individual imposed by Allah on which state has the first right to collect. But if the state does not collect that amount ( due to any reason ), then the individual should pay his due Zakat himself. Therefore, if the income earned is above Nisab then one should pay Zakat due at an individual level, despite the fact it is tax/zakat exempted . Secondly , Zakat is applicable only when amounts exceed Nisab threshold ( for both production and wealth ). However, there can be difference of opinion on whether Zakat percentage should be applied on amount only above Nisab threshold or on the whole amount as soon as it crosses the Nisab threshold . Please see these responses of Ghamidi Sahab in this regard: Discussion 988 • Reply 31187 Discussion 988 • Reply 36937 _____ 2 ). The remaining 5% would need to be paid separately by the individual. _____ 3 ). In case of Production/Earning, Zakat becomes due immediately on the gross production as soon as the production occurs. Therefore, no deduction of future saving of personal nature can be made out of that earning and complete Zakat would need to be calcuated as per the above mentioned principle. It is only after an item becomes an item of personal nature ( in this case after becoming a part of savings ) then it will be considered exempt from Zakat. ( More details on Zakat : Discussion 58129 • Reply 58137 ) _____ Following video of Ghamidi Sahab addresses first two questions : Please refer from 18:58 to 24:41 https://youtu.be/1HdOFN_2gPY?t=1138