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Compliance Tool

Tax & Zakat
Estimator

Calculate your annual income tax and exact Zakat obligations based on Shariah Nisab thresholds and current market rates.

Eligibility & Guidelines

Who must pay Zakat?

  • Adult, sane Muslims with wealth above the Nisab.
  • Wealth must be fully owned and free from immediate debt.
  • Held for one complete lunar year (Hawl).
1. Annual Income Tax
Rs
%
2. Precious Metal Rates
Rs
Rs
3. Assets & Investments
Rs
Rs
Rs
Rs
4. Deductible Liabilities
Rs

Live Calculation Summary

Total Asset Value: Rs 0
Total Deductions (Liabilities): - Rs 0
Net Eligible Wealth: Rs 0
Income Tax Payable:
Rs0
Zakat Payable (2.5%):
Rs0

Freelancer Compliance Guide

Understanding your tax and religious obligations keeps you stress-free and your freelance business legally compliant.

Income Tax for Freelancers (Pakistan):

  • IT & IT-Enabled Services: If you bring foreign remittance to Pakistan through official banking channels and are registered with PSEB, your tax rate is generally just 1% of your total gross income.
  • Non-IT Freelancers: If your work doesn't fall under IT services, normal income tax slabs apply based on your net profit.

Frequently Asked Questions

Is Zakat calculated on my annual income?

No. Zakat is not an income tax. It is calculated only on your savings and accumulated wealth that has been sitting with you for a full year.

Do freelancers really only pay 1% tax?

Yes, under the current tax laws in Pakistan, registered IT exporters who receive payments directly into a business bank account as PRC enjoy a flat 1% withholding tax rate.

Zakatable assets & liabilities by Fiqh

Hanafi

  • Cash, trade goods, gold and silver, livestock, and business assets held for trade are zakatable.
  • Personal items (home, car, clothing) are not zakatable; deduct short-term debts.
Further reading: NZF Knowledge Base (Hanafi resources)

Shafi'i

  • Cash, gold/silver, and trade stock are zakatable; intention and hawl apply.
  • Non-trade personal assets not zakatable; deduct due debts within the year.
Further reading: SeekersGuidance (Shafi'i)

Maliki

  • Cash, trade goods, agricultural produce, and livestock covered; gold/silver per nisab.
  • Personal use items exempt; deduct immediate liabilities.
Further reading: SeekersGuidance (Maliki)

Hanbali

  • Zakat due on cash, gold/silver, trade goods, certain livestock; hawl and nisab conditions.
  • Personal residence and essentials exempt; short-term debts deductible.
Further reading: NZF Knowledge Base (Hanbali coverage)

Fiqh-e-Jafri (Ja'fari) — Khums vs Zakat

  • In Ja'fari fiqh, Zakat is obligatory primarily on specified categories (e.g., gold/silver meeting nisab, certain livestock, select staples) and not generally on cash or trade stock.
  • Khums (one-fifth) is a distinct annual obligation on surplus income/savings after yearly expenses and on specific gains; it is separate from Zakat with different recipients.
  • This calculator focuses on Zakat; Khums is not computed here. Consult your scholar for Khums calculation and distribution.
Further reading: Al-Islam.org — Khums (One-Fifth) Further reading: Ayatollah Sistani — Islamic Laws: Khums

These notes are concise summaries. Always verify rulings with a qualified scholar for your circumstances.