Group MembersNurfarah Idayu Chai Hui SyinKit Mey Yan

Nur Amanina

Lecture Name : Mohd Adib Bin Abd Muin

ZAKAT

Introduction of Zakat

Zakat is a compulsory tax

levied by an Islamic state on the

members of the Muslim community

Zakat” means to make something increase or grow.

Zakat is a reminder to owners of wealth and wage earners

than this is a religious obligation

and a social responsibility.

The word Zakat itself shows that

wealth which is not spent judiciously

and wisely on one’s self or others,

generates evil in the society.

ASSETS SUBJECT TO ZAKAT

Money, livestock, property, etc are called growing assets since they have the potential to grow or generate income

The assets must be lawfully and completely ownedThe assets should be in excess of basic needs.

When fixed assets are used to generate growth, zakat is assessed on the growth only and the fixed assets itself is exempted from zakat.\

For example, building are exempted from zakat but their growth (i.e., rent) is subjected to zakat at the rate of 10% of the net income.

Zakat is 10% on the net income after deductingallassociated expenses including any taxes and amortization ,and 5% if calculating on the gross income

Liability of Zakat

Liabilities:If there is any Income

Tax or Sales Tax payable to Government on the date of calculation of Zakat, such liabilities

you may deduct before arriving at the net

wealth.

NOTE: Payment of Income Tax or Sales Tax

does not fulfil your liability towards Zakat and you cannot deduct Income Tax payments from your net Zakat.

Only tax liability, if due on the date of Zakat

calculation is detectable from the nett assets. Zakat is apart from

Income Tax and Wealth Tax

THE OBLIGATORY OF BUSINESS ZAKAH

TO BE MUSLI

M

FREEDOM

VALID OWNERSH

IP

REACH THE NISAB

REACH THE

HAUL

BASIS OF THE ASSETS IN ZAKAH

Full Possession

Real or Assumed Growth

Fulfilling the Nisab (Minimum Amount Liable

To Zakah)

Fulfilling One’s Basic Needs

The Lapse of a Full Year

Forbidding Twice Payment of

Zakah at the Same Year

ZAKAH EXEMPTIONNon-

productive fixed assets

Productive

fixed assets

Non-current assets

Retention time to the non-current

assets at the end of haul will be zakah

While not perfect-owned assets

Credict scheme

members

Operating current

liabilities only

Funds in the

business for charity exempt zakah

Net result is zakah has done receipts

No illegal proceeds

will be zakah

THE 8 BENEFICIARIES (ASNAF)

THE POOR THE NEEDY

THE ADMINISTRATIO

N OF ZAKAT (AMIL)

THE SYMPATHIZERS (MUALLAF)

TO FREED SLAVES (RIQAB)

THOSE WHO ARE IN DEBT

(GHARIMIN)

FOR THE CAUSE OF ALLAH (FISABILILLAH)

THOSE WHO ARE STRANDED DURING A

JOURNEY (IBNU SABIL)

CALCULATION ZAKAHMETHOD OF GROWING CAPITAL (URFIYYAH) owner’s + long-term - fixed - non-current +\-

adjustment equity liabilities assets assets

METHODS OF WORKING CAPITAL (SYAR’IYYAH) Current assets – current liabilitis and (+\-)

adjustment

If the property exceeds nisab business(value of 85gm gold during assessment)and sufficient haul business a year,then the property is by 2.5% only.

ZAKAH OF FIXED ASSETSPAK ALI HAS 20 HECTARE AGRICULTURAL LAND AND HE RENTS TO OTHER PEOPLE 1000 RIYAL OF THE ONE HECTARE,THE RENTER PLANTING WHEAT AND GET OUTCOME 14.4 TAN WHEAT WITH PRICE 4OOO RIYAL FOR ONE TAN,AFTER THAT RENTER PAYING WAGES OF PLANTING 12000 RIYAL AND IN FLUSH USING RAIN WATER AND RIVER WATER. TOTAL INCOME (14.4 X 4000) 57600 IN LESS: GROUND RENT 20000 WAGES OF PLANTING 12000

TOTAL COST 32000 NET INCOME 25600

THE NET INCOME ABOVE EXCEED NISAB AND BE CHARGE ZAKAT 10 % BECAUSE USING RAIN WATER AND RIVER.

EXAMPLE ZAKAH CALCULATION

VALUE OF ZAKAT IN NATURE OF MONEY : 25600 X 10 /100 =2560

VALUE OF ZAKAT IN SHAPE THING (ZAKAT OF RENTER): 2560/4000 X 1000 =640 KILOGRAM

NISAB OF ZAKAT PLANTING 653KG X 4 RIYAL =2612 RIYAL

NISAB ZAKAT RENT (MONEY)85 GRAM GOLD, INCOME CAN BE CHARGE,ZAKAT OF LAND OWNER: 20 X 1000= 20000 RIYAL.

THIS TOTAL EXCEED THAN ZAKAT NISAB AND CAN BE CHARGED ZAKAT

AT THE RATE 10 PERCENT. VALUE OF ZAKAT BE CHARGED INNATURE OF MONEY TO

LAND OWNER IS: 20000 X 10 /100 = 2000 RIYAL

DESCRIPTION: ONE TAN =1000 KILOGRAM ONE KILOGRAM =1000 GRAM ONE HECTARE =10000 SEQUARE METER =10 DUNUM ONE DUNUM =1000 SQUARE METER