About Zakat
What is the ruling on zakat for cryptocurrency and digital assets?
Cryptocurrency and digital assets that are backed by currency (gold, silver, or fiat money) fall under the category of Currency (as-Sarf), and their zakat ruling is analogized to the zakat on currency. Cryptocurrency and digital assets that are not ...
If there are many types of cryptocurrencies, how should it be handled?
If many type of cryptocurrencies, it should be calculate as below: Formula : [ Units of cryptocurrency and digital assets x current price (at end of haul) ] 1. Calculate for each cryptocurrency owned. Sum up the total 2. Total value of all ...
How is the calculation method for Zakat on cryptocurrency?
Method for Calculating Zakat on cryptocurrency The formula: Units of cryptocurrency and digital assets x current price (at end of haul) x 2.5% = Total Zakat Example: Mr. Ali owns 0.2 units of Bitcoin (BTC) which has met the haul requirement. The ...
What is Zakat on cryptocurrency?
Cryptocurrency refers to a form of currency developed using blockchain and digital technologies. According to the decision of the Selangor State Fatwa Committee meeting held on 17 August 2021, it is deemed harus (permissible) to engage in ...
How is zakat on gold and silver calculated?
The method of calculating zakat on gold and silver differs by state. Generally, the calculation method is as follows: Zakat is required only if the total gold worn meets or exceeds the ‘uruf (local customary threshold, e.g., 500 grams). Formula: ...
What are the Conditions for Compulsory Zakat Fitrah?
Muslims who are required to pay zakat fitrah for themselves, their families, and their dependents must meet the following conditions: 1. Have excess food or wealth beyond the needs of their dependents on the eve and morning of Eid; 2. A child born ...
What’s the difference between savings zakat and income zakat?
Savings zakat is based on accumulated funds that exceed nisab for a year. Income zakat is imposed on regular earnings exceeding nisab.
Is it valid to pay missed zakat in estimated amounts if the exact figures are unknown?
Valid and allowed.
Should zakat be paid immediately on gifts/inheritance/EPF/will funds, or wait a year?
Yes, it is encouraged to pay zakat immediately, or one may wait until a year (haul) passes.
How is income zakat calculated?
There are two guidelines for calculating income zakat: 1. Gross annual income (if it exceeds the nisab) × 2.5% = zakat amount payable 2. Net income (income exceeding nisab minus allowable basic expenses) × 2.5% = zakat amount payable
Is it true that savings that have reached haul and nisab only need zakat in the first year?
Zakat must be paid every year as long as the savings remain above the Nisab and meet the haul requirement.
I withdrew money from my EPF savings. Do I need to pay zakat on it?
You must pay 2.5% of the total withdrawn amount as obligatory zakat (Al-Mal Al-Mustafad).
Will I be charged for the online zakat estimation?
There will be no charges imposed for the online zakat assessment estimation.
Is the transaction receipt printed via MyEG an official zakat payment receipt from Zakat agency?
The MYEG transaction receipt is an e-service receipt used as a reference for payment verification purposes. Only receipts for zakat payments made to MAIAMP are considered official receipts. For payments made to other agencies, the official receipt ...
A wealthy person gives a lot of charity but does not pay zakat. Is the obligation of zakat waived?
Charity and zakat are two different matters. Charity (sadaqah) is a voluntary act that is not compulsory. It is only encouraged for those who are able to do so. Zakat, however, is one of the religious obligations that is mandatory for every ...
What is the ruling on paying zakat in a state other than the state of employment?
Basically, zakat can be paid in a different state than the place of employment, as long as it is distributed to eligible zakat recipients (asnaf). However, it is more virtuous (afdhal) to pay zakat in the place where the wealth is earned or owned. ...
Zakat and Tax
INCOME TAX TREATMENT ON ZAKAT [REBATE] Income Tax Act (ACP) 1967, Section 6A (3): All zakat payments (including overdue zakat) can be deducted from individual income tax based on Section 6A(3) of the Income Tax Act 1967 in the same year. SCHEDULED ...
What are the obligatory conditions for wealth zakat?
The mandatory conditions for zakat are as follows: 1. ISLAM 2. FREEDOM 3. FULL OWNERSHIP Ownership of the wealth must be clear and no other person has rights over it except the owner. 4. REACHES NISAB (Minimum Threshold) The wealth must reach or ...
What are the types of Zakat?
In general, zakat is divided into two categories: 1. Zakat Fitrah (Physical Zakat) – Given during the month of Ramadan. 2. Zakat on Wealth (Zakat Mal) – Involves the following types of wealth: i. Salaries ii. Income iii. Business iv. Savings v. EPF ...
What is Zakat?
Zakat's Position in Islam: Fulfilling (paying) zakat is the third PILLAR OF ISLAM. It is obligatory upon every Muslim who meets all the required conditions to pay zakat. The Ruling on Fulfilling Zakat: Zakat is a personal obligation (Fardhu Ain) upon ...