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Zakat On Business Income
I do freelancing and have now got an intern employee to help me handle clients. The salary i pay to him is a very small portion of my overall monthly income. Will my zakat on production become 5% as it involves investment and my labor as well or do I have to continue with 10%.
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14 Replies
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Zakat On Business Income
updated 2 weeks, 4 days ago
2 Members
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14
Replies
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Please refer to the following link
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If the income is not taxable you are not liable to pay zakat. Also include the taxes you pay in zakat.
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My income is taxable so I am liable to pay zakat of production but earlier it was only me doing labour so I used to do 10% zakat. Now I have got an employee whom I pay salary. Now would my zakat lessen to 5%? (Given the fact that the salary I pay to him is a very small portion of my overall monthly income?
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Yes, it will be 5 percent now on gross.
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I am confused because the salary I pay to him is very small portion of my overall monthly income? Still 5%
Also I am handling 4 clients he is helping me with 3 clients so will the payment of 4th client that he is not helping me with go with 10% zakat or all of the income would go with 5%?
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If the income is small, it should not be taxable. if it is taxable you have to pay 5% of it. The business is taken as a whole.
You can count the tax you pay as Zakat. then there will be a very small amount to pay as zakat. However, if you think that the threshold of taxable zakat is not fair, then you can decide not to pay zakat on it with honesty and put your case before God in the hereafter.
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Sorry there has been a misunderstanding. No my income is not small. Its definitely taxable the confusion I have is that I was paying 10% zakat earlier but now I have got that employee but his salary is a very small amount of my monthly income. Should it still lessen my zakat to 5%?
For sake of example I earn 10 lacs and I was paying 10% zakat on it. Now I got employee at 30000 salary. Its a small one as compared to the 10 lacs. Still it would lessen the zakat to 5%?
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According to the law, it will be 5 percent now. Still, the ways to earn more pleasure from God are open for the generous ones.
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Jazakallah
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There is a point in the video where Ghamidi Saheb says that if the expenses are not significant, then it will be 10%. Now you can decide.
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Salam
I kept it at 10% till now but now situation has changed and my revenue got down so my expenses now are a considerable another. Earlier it was just a few percent but expenses are around 15% now. Can I shift to 5% or is it still going to be 10%.
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This is what you have to decide according to your situation.
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Yes but asking for a suggestion from knowledgeable people
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Religion is easy, if you choose an option which is easier for you, it is not against the spirit of Islam.
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