Zakat On Salary When There Is No Tax
As a principle Zakat is calculated on your Total Salary i.e. Zakat on Production = [(Monthly Salary of 100,000*12)-Nisab for Yearly Production Zakat]*10% However, there can be difference of opinion on whether Zakat percentage ( 10% in your case ) should be applied on amount only above Nisab threshold ( as given in the equation above ) or on the whole amount as soon as it crosses the Nisab threshold (i.e. Zakat on Production assuming total production to be greater than Nisab = [Monthly Salary of 100,000*12]*10%). Please see these responses of Ghamidi Sahab in this regard: Discussion 988 • Reply 31187 Discussion 988 • Reply 36937 If there is no tax then one can use the nisab of amount equivalent to 653 kg of dates . Please see for details: Discussion 48837 __ For Details on Law of Zakat , please see: Discussion 58129 • Reply 58137