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    Zakat On Share and Income

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    qairunnisa
    Zakat must be paid on income from employment at a rate of 2.5% of gross income per year or net income per year. Income includes salary, bonuses, and other earnings. Expenses like family living costs and contributions can be deducted to calculate net income. Zakat is also due on shares held at the end of the zakat year. For shares still owned at year-end, zakat is 2.5% of the lowest market price during the year. For shares traded during the year, zakat is 2.5% of capital gains.

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    Zakat On Share and Income

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    qairunnisa
    181 views11 pages
    Zakat must be paid on income from employment at a rate of 2.5% of gross income per year or net income per year. Income includes salary, bonuses, and other earnings. Expenses like family living costs and contributions can be deducted to calculate net income. Zakat is also due on shares held at the end of the zakat year. For shares still owned at year-end, zakat is 2.5% of the lowest market price during the year. For shares traded during the year, zakat is 2.5% of capital gains.

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    about zakat on share and income in malaysia

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    zakat on share and income

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    Zakat must be paid on income from employment at a rate of 2.5% of gross income per year or net income per year. Income includes salary, bonuses, and other earnings. Expenses like family living costs and contributions can be deducted to calculate net income. Zakat is also due on shares held at the end of the zakat year. For shares still owned at year-end, zakat is 2.5% of the lowest market price during the year. For shares traded during the year, zakat is 2.5% of capital gains.

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    Download as pptx, pdf, or txt
    181 views11 pages

    Zakat On Share and Income

    Uploaded by

    qairunnisa
    Zakat must be paid on income from employment at a rate of 2.5% of gross income per year or net income per year. Income includes salary, bonuses, and other earnings. Expenses like family living costs and contributions can be deducted to calculate net income. Zakat is also due on shares held at the end of the zakat year. For shares still owned at year-end, zakat is 2.5% of the lowest market price during the year. For shares traded during the year, zakat is 2.5% of capital gains.

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    ZAKAT ON INCOME AND

    ZAKAT ON SHARES

    Zakat on Income
    Additional payment receive by an individual from their employer or
    individual itself in the form of physical energy or professional
    employment or physically for specific day, month and yearly also been
    required to pay zakat.
    Prof.Dr.Yusuf al-Qaradawi and Dr.Hussein Shahatah, pay zakat and
    income termed Mustafad Zakat al-Mal which is sourced from Zakat
    salary and professional income.It is the reward of service with an
    employer or an individual or institution.

    Meaning :
    To all men who are all faithful to Allah . Give out the best what you
    have work for and this is part what comes from the earth that we have
    given you."
    (Surah Al-Baqarah : Ayat 267 )

    Condition
    Income will include :

    Salary
    Arrears of pay
    Various allowances (car, meals, meetings)
    Income
    Others (including bonus or something that can be counted as income such as
    royalties, rent and other)

    Pay and free income must be counted based on the following conditions:

    Islam
    Independent
    Complete ownership
    Nisab
    Haul
    Lawful income

    CALCULATION
    OF ZAKAT
    INCOME

    METHOD 1

    METHOD 2

    Using gross
    income (without
    deduction) 2.5%
    on gross income
    per year.

    Using the net


    income(Income
    year less
    allowable
    expenses per
    year) x 2.5%

    Method 1

    Method 2
    (A) GROSS INCOME PER YEAR

    (RM)

    Basic salary

    42,000

    Various allowances

    10,000

    Other income

    6,000

    Total income

    58,000

    (B) (-) HAD KIFAYAH PER YEAR

    (RM)

    Himself

    10,850

    Wife

    6,000

    His parent ( 2 person ) ( RM2300 each )

    4,600

    His daughter ( 7-11 years old ) ( 2 person ) ( RM 2,200 )

    4,400

    His daughter ( 0-6 years old ) ( 1 person ) ( RM 1450 )

    1,450

    (C) ( - ) ADDITIONAL HAD KIFAYAH

    ( RM)

    Disable children ( no example ) ( RM2,400 each )

    Chronic deseases ( no example ) ( RM2,400 each )

    OTHER DEDUCTIONS

    (RM)

    EPF contributions

    5,170

    Contributions fund for HAJJ

    2,000

    Total deductions ( B + C + D )

    34,470

    THE AMOUNT OF ZAKAT

    (RM)

    A - ( B + C + D ) = E ( More Than Current Nisab )


    Nisab For 2015 = RM11,145

    23,530

    Zakat Per Year ( RM23,530 X 2.5 %)

    588.25

    Zakat Per Month ( RM588.25 / 12 )

    49.00

    Zakat On Shares
    Dr Yusoff al-Qardhawi in his book Fiqh-Zakat defines shares as valuable
    papers or commodities that are traded in the market such as Bursa
    Malaysia.
    Zakat which is given out for investment which has reach its time limit
    and minimum value.






    O you who believe! spend (benevolently) of the good things that


    you earn and or what We have brought forth for you out of the
    earth, and do not aim at what is bad that you may spend (in alms)
    of it, while you would not take it yourselves unless you have its
    price lowered, and know that Allah is Self-sufficient, Praiseworthy.

    Condition Zakat Of Shares


    Include only those shares and bonds that you owned on the last day
    of the previous zakat year, and use the market value as of that date.
    Purchases made during this year should not be included in this.
    Include all shares and bonds that you owned on the last day of the
    current zakat year, and use the market value as of that date.
    Include only those earnings that occurred within the zakat year,
    then exclude that portion from the earnings.
    Include all associate expenses, including estimated income tax on
    earnings and capital gains.

    Types Of Zakat On Shares


    I. Share that is still owned until the end of
    haul.
    *The calculation of Zakat is 2.5% on the
    smallest price or cost.
    Listed companies (from Syariah Councils)
    Shares owned at the end of haul period
    2.5 percent on the lowest market price of the share

    Shares traded during the haul period


    2.5 percent on the net profit (capital gain)

    Sample calculation for 200 lots of share :


    1 lot : 100 units
    1 lot : RM1.00
    200 lots :
    = 200 lot x RM1.00
    = RM20,000.00
    Zakat :
    = RM20,000.00 x 2.5%
    = RM500.00

    II. Share that always trade in the duration of haul (a


    year)
    *The calculation is 2.5% on the value of share after
    deducting the expenses cost (profit).
    Non-listed companies (from Syariah Councils)
    Difficulties to determine the market value
    Zakat is calculated based on the dividend
    received

    Sample of calculation :
    Total value of selling share expenses cost (profit)
    = RM500,000 RM400,000
    = RM100,000.00
    Zakat :
    = RM100,000 x 2.5%
    = RM2,500.00

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