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+--- Thread: Exemption of Zakat from Income of Employee (/thread-exemption-of-zakat-from-income-of-employee)
Exemption of Zakat from Income of Employee - zara khan - 09-26-2009
anyone tell me is zakat totally exempted from income of employee
tell me calculation
- faisal_desperado - 09-26-2009
<blockquote id="quote"><font size="1" face="Verdana, Arial, Helvetica, san" id="quote">quote<hr height="1" noshade id="quote"><i>Originally posted by zara khan</i>
<br />anyone tell me is zakat totally exempted from income of employee
tell me calculation
<hr height="1" noshade id="quote"></font id="quote"></blockquote id="quote">
Dear,
Under Section 60, A person shall be entitled to a deductible allowance for the amount of any Zakat paid by the person in a tax year under the Zakat and Ushr Ordinance, 1980 (XVIII of 1980).
Zakat is totally exempted, if it is paid to the specified institutions.
Amount paid as zakat should be deducted from the total income to arrive at the taxable income i.e. if 10,000 has been paid as zakat to the specified institution, and total income is 400,000 then 10,000 will be deducted from 400,000 and tax rate will be applied on the reminder, i.e. on 390,000. Since in this case, 390,000 has been calculated to be taxable income.
I hope, you have been replied.
Regards,
- fpaimran - 09-26-2009
Dear faisal,
Is dividend paid by Asset Management Company to a banking company is exempt from Zakat? Could you give some reference to the circular or notification etc?
Regards
- faisal_desperado - 09-28-2009
<blockquote id="quote"><font size="1" face="Verdana, Arial, Helvetica, san" id="quote">quote<hr height="1" noshade id="quote"><i>Originally posted by fpaimran</i>
<br />Dear faisal,
Is dividend paid by Asset Management Company to a banking company is exempt from Zakat? Could you give some reference to the circular or notification etc?
Regards
<hr height="1" noshade id="quote"></font id="quote"></blockquote id="quote">
Dear,
As per Zakat and Ushr ordinance 1980, there is not any such specification, however, as soon as i get any such information / notification / circular then i would let you know.
Regards