Zakat Tax Calculator

Simplifying Zakat Calculation in Pakistan

Welcome to the premier online Zakat calculator Pakistan, designed to bring precision and ease to your religious and financial obligations.

Our online Zakat calculator simplifies the process of manually calculating diverse holdings. We help you quickly determine your Zakat liability by accurately assessing your Zakatable Assets against the latest Nisab. This free online zakat calculator is designed for Pakistanis who want quick and reliable results without having to perform manual calculations or refer to outdated rates.

What is Zakat?

Zakat is one of the five pillars of Islam, a fundamental part of a believer’s religious obligations. It means purification in the literal sense. It is a means of worshipping Allah (SWT) by giving a set percentage of total wealth to the eligible each lunar year. Every sane Muslim adult whose accumulated wealth exceeds the current nisab value has to pay Zakat.

Discover the Features of Our Online Zakat Calculator in Pakistan

Pak Tax Calculator is an accurate and user-friendly platform, built on a deep understanding of Fiqh and current Pakistani financial regulations, ensuring your calculations are both Sharia-compliant and precise.

Here are some prominent features of our Online Zakat Calculator

Accurate Zakat Calculation

Pak Tax Calculator strictly adheres to the 2.5% rate on net Zakatable assets. It ensures precision by accounting for both your assets and permissible liabilities, leaving no room for manual errors. It acts as a digital advisor, guiding you through the complexities of Islamic finance to ensure your obligation is fulfilled accurately.

Compliant with Sharia Law

The calculation is built upon and verified by Islamic scholars to ensure it adheres to the principles of Fiqh. This includes proper classification of assets and the correct application of rules for deducting debt and setting off Zakat on shares.

User-Friendly Interface

You don’t need a financial expert to use the free online Zakat calculator. The interface is simple and breaks down the complex calculations into simple, clear steps. It has designated fields for assets and liabilities with labels to clarify which amounts should be included.

Real-Time Updates

The calculator is regularly updated to reflect changes in local regulations or new scholarly consensus regarding specific asset classes, ensuring that the guidance you receive is always current. Moreover, it also improves efficiency, saving significant time and effort.

Up-to-Date with Latest Gold and Silver Rates

Zakat eligibility is determined by the Nisab threshold, which is tied to the market value of gold or silver. Our online Zakat calculator features live integration with financial data sources, automatically fetching the latest PKR rates for precious metals. It guarantees the most accurate Nisab check on the day of the calculations.

Data Security

Pak Tax Calculator keeps the sensitive financial details safe with its ability to encrypt the data and delete it as soon as you leave or refresh the page. Moreover, we don’t ask for login details or personal credentials. This calculator is 100% free to use and keeps your financial data secure and encrypted.

How to Use Our Online Zakat Calculator?

Follow these simple steps to get your Zakat amount:

1. Starting by choosing the Nisab Threshold, i.e., according to the Value of Silver or the Value of Gold
2. Enter the Zakatable Assets, which include In Hand, Savings, Debt Owed to You, Investments, and Stock Assets
3. Now mention your liabilities, i.e., money owed, business liabilities, and other outgoings due

4. The Zakat calculator will automatically display your net worth and payable Zakat amount

What is Nisab for Zakat in Islam?

Nisab is the minimum amount of wealth a Muslim must possess before they become eligible to pay Zakat. This amount is often referred to as the nisab threshold, which is defined in Islam in terms of the specific weight of gold or silver.

For instance, Nisab is equated to:

• Gold: 5 tola or 87.48 grams
• Silver: 5 tola or 612.36 grams

You can calculate the nisab value at any time by converting these weights into your local currency. But our calculator automatically applies these nisab values and cross-checks them against current gold and silver prices in Pakistan to give you a precise Zakat calculation.

How to Calculate Zakat on Your Income?

Calculating Zakat on cash is very straightforward.

First, calculate your total assets from the past year, including all cash in your bank account, cash at home, and cash that is owed to you.

Then subtract any cash that you owe to others/in debt, as well as any cash outgoings.

If this value exceeds the Nisab threshold, you are required to pay Zakat. This is calculated by multiplying the net cash you own by 2.5%.

For example:

You have PKR 1 Million in your bank account and PKR 1.8 million worth of jewelry

Income = PKR 2.8 Million

But you owe your brother PKR 500,000. We will deduct this from the total, and it will give us our total Zakatable assets.

Total Zakatable Assets =>2,800,000 – 500,000 = PKR 2,300,000

It means our total Zakatable assets are 2.3 million, so multiply it by 2.5% and you will have your payable Zakat.

Payable Zakat => 2,300,000 x 2.5% = 57,500

How to calculate debts and liabilities with regard to paying Zakat?

Some debts and liabilities can be deducted from the total value of your Zakatable assets when calculating the amount of Zakat you must pay for the previous year. These include:

• Debts must be paid off within 12 months
• Up to 12 months’ worth of instalments of longer-term debts
• Arrears and/or overdue payments

However, not all debts and liabilities can be deducted from the total value, like:

• Expenses and bills that are not yet due
• Debts that are not payable at all in the next 12 months
• Interest payments

FAQs

Who is eligible to receive Zakat?

8 type of people are eligible to receive zakat: The poor (Fuqara), The needy (Masakeen), Collectors of Zakah (Al-‘Aamileen), Friends of the Islamic community and/or revert Muslims (Al-Mu’allafatu-Al- Quloob), The cause of (freeing) the slaves (Ar-Riqaab), Debtors (Gharimeen), The way of Allah SWT (fi Sabilillah), and Wayfarer/Travelers (Ibn-us-sabil)

What assets are subject to Zakat?

It is not obligatory to pay Zakat on every asset. Only assets that have the potential for growth or increase are subject to Zakat. These assets include trading assets, cash & cash equivalents (such as prize bonds and travelers’ cheques), Gold and Silver (for any purpose), and Agricultural Output or Ushr.

What are the benefits of Zakat?

Beyond the spiritual reward, Zakat plays a crucial socioeconomic role in Pakistan by reducing wealth disparity, alleviating poverty, and fostering a spirit of community and social justice. It is a fundamental element of the country’s social safety net.

Support and Contact Information

For any inquiries, assistance, or personalized support, please do not hesitate to contact our dedicated support team. Our experts are ready to help you navigate through any challenges or questions you may have.

Contact Email: [help@paktaxcalculator.pk]

We value your feedback and are committed to ensuring a seamless experience with the Online Zakat Calculator.