Zakat on Business – How to Calculate Business Zakat in Pakistan
Zakat on business is obligatory for Muslims whose business assets reach the Nisab threshold and have been held for one lunar year. Business Zakat is calculated on net assets, not total revenue.
Business assets include cash in hand, bank balance, inventory, receivables, and profits. Short-term liabilities such as payable debts and expenses can be deducted before calculating Zakat.
After deducting liabilities, if the remaining value equals or exceeds the Nisab, Zakat becomes obligatory at a rate of 2.5%. Accurate calculation is essential to avoid underpaying or overpaying Zakat.
Frequently Asked Questions
What assets are included in business Zakat?
Cash, inventory, receivables, and profits are included.
Can debts be deducted from business Zakat?
Yes, short-term liabilities can be deducted before calculation.