The document discusses zakat, an obligatory tax in Islam. It is levied on certain assets that have grown or generated income over the past year. Assets subject to zakat include money, livestock, property and business profits if they meet the minimum threshold (nisab) and have been owned for at least one lunar year. Zakat is calculated at 2.5-10% depending on the asset and is to be distributed to the eight categories of recipients. An example is provided to demonstrate how to calculate zakat on agricultural land that is rented out to tenants.

1. Group Members
Nurfarah Idayu
Chai Hui Syin
Kit Mey Yan
Nur Amanina
Lecture Name : Mohd Adib Bin Abd
Muin

2. 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.

3. 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

4. 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

5. THE OBLIGATORY OF BUSINESS
ZAKAH
TO BE
MUSLIM
FREEDOM
VALID
OWNERSHIP
REACH THE
NISAB
REACH
THE
HAUL

6. BASIS OF THE ASSETS IN ZAKAH
Full Possession
Forbidding Twice
Payment of Zakah at
the Same Year
Real or Assumed
Growth
The Lapse of a Full
Year
Fulfilling the Nisab
(Minimum Amount
Liable To Zakah)
Fulfilling One’s Basic
Needs

7. ZAKAH EXEMPTION
Nonproductive
fixed assets
While not
perfectowned assets
Funds in the
business for
charity
exempt zakah
Productive
fixed
assets
Noncurrent
assets
Credict
scheme
members
Net result is
zakah has
done receipts
Retention
time to the
non-current
assets at the
end of haul
will be zakah
Operating
current
liabilities only
No illegal
proceeds will
be zakah

8. THE 8 BENEFICIARIES
(ASNAF)
THE POOR
THE NEEDY
THE
ADMINISTRATION
OF ZAKAT (AMIL)

9. THE
SYMPATHIZERS
(MUALLAF)
TO FREED
SLAVES
(RIQAB)
THOSE WHO
ARE IN DEBT
(GHARIMIN)

10. FOR THE CAUSE OF
ALLAH
(FISABILILLAH)
THOSE WHO ARE
STRANDED DURING
A JOURNEY
(IBNU SABIL)

11. CALCULATION ZAKAH
METHOD 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.

12. EXAMPLE ZAKAH CALCULATION
ZAKAH OF FIXED ASSETS
PAK 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.

13. 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.

14. 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