Page 8 - Obligatory Zakat Made Easy
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ZAKAT ON INCOME
Definition
According to Prof. Dr Yusuf Al-Qaradhawi and Dr Hussein
Shahatah, salary and income zakat are called al-Mal
al-Mustafad, i.e. zakat which is derived from salary and
professional income.
Categories of Salary and Income
i. Employment Salary and Wages: Salaries, wages,
bonuses, overtime pay, gratuity, compensation,
pensions, prizes, awards, intensive, ESOS (employee
stock option scheme) and any income derived from
service or employment.
ii. Freelance Income
• Payment of professional consultancy services
• Project payments or profits received by contractors
• Commission and residual income such as sales of
insurance, takaful, unit trust, brokerage & the like
• Royalties or commissions from writing, publications,
arts activities and so on
iii. Income-Generating Property (Mustaghallat)
• Rental income from assets such as buildings,
premises, equipment, etc.
• Products of livestock such as milk, eggs, honey, etc.
* Income not required for zakat calculation:
Claims of lodging, overseas travel, entertainment, mileage
and other
Calculation Method
METHOD 1 RM
ANNUAL GROSS INCOME 48,000.00
(Due to exceeding the nisab ) x 2.5%
Note 1
ZAKAT REQUIRED TO BE PAID 1,200.00
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