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Saturday, August 8, 2020 | History

3 edition of Payment of Zakat and receiving of interest on Provident Fund found in the catalog.

Payment of Zakat and receiving of interest on Provident Fund

MuhМЈammad ShafiМ„К» MuftiМ„

Payment of Zakat and receiving of interest on Provident Fund

by MuhМЈammad ShafiМ„К» MuftiМ„

  • 366 Want to read
  • 12 Currently reading

Published by Darul Ishaat, Also available at, Siddiqui Trust in Karachi .
Written in English

    Places:
  • Pakistan.
    • Subjects:
    • Interest (Islamic law),
    • Zakat.,
    • Pension trusts -- Pakistan.

    • Edition Notes

      Other titlesProvident fund
      Statementcompilation, Mufti Muhammad Shafi; translated by Anwar Ahmed Meenai.
      Classifications
      LC ClassificationsKBP868.2 .M84 1995
      The Physical Object
      Pagination63 p. ;
      Number of Pages63
      ID Numbers
      Open LibraryOL3722843M
      LC Control Number2003342112

        Ankur Choudhary Co-Founder and CIO, Goalwise replies, "You can keep the provident fund (PF) with your ex-employer till retirement. However, do so only if you trust your ex-employer as there have been cases of irregularities in management of private PF trusts. Your provident fund balance will continue to earn interest till you are   IN THIS POST – What is Nisab – Rate of Zakat – Assets on which Zakat is payable – Zakat deduction from bank accounts – Exemption from deduction – Eligibility to receive Zakat Update (Ap ): The federal government has announced the Nisab of Zakat for As per the statement released by the State Bank of Pakistan, the Nisab for the current year has been set at PKR .

      Collection of Zakat Fund. Maintenance of Journal Entry at the end of the financial year. Maintenance of Broad Sheet and Detail Book. Gives reply of Audit observations by Audit parties. Prepares monthly GPF Final Payment report to the Controller General of Accounts, Islamabad. F C-II. The nature of work in FC-II section is. explained as under, 1. The Treasury Officer on scrutiny of the bill passes the same effecting payment of interest by transfer credit to Provident Fund Deposit Account under the Head “Civil DepositOther deposits-Provident Fund Deposits etc.” The amount of interest as mentioned above will be drawn out of the Head of Account “Interest Payment.

        I have a provident fund scheme in which my employer contributes 15% and I contribute 5% from my monthly salary towards this fund. The purpose of this scheme is to accumulate money that will be given to me upon retirement or upon termination of my contract with the company.   The interest even though calculated on a monthly basis, is transferred to the Employees’ Provident Fund account only on a yearly basis on 31st March of the applicable financial year. The transferred interest is summed up with the next month i.e. April’s balance and is then again used for calculation of the interest.


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Payment of Zakat and receiving of interest on Provident Fund by MuhМЈammad ShafiМ„К» MuftiМ„ Download PDF EPUB FB2

Payment of Zakat and receiving of interest on Provident Fund. Karachi: Darul Ishaat: Also available at, Siddiqui Trust, (OCoLC) Document Type: Book: All Authors / Contributors: Muḥammad Shafīʻ, (MuftiÌ). Title: Zakat on the withdrawl provident fund Question: I have recently withdraw the provident fund from my company.

I got the cumulative amount (my contribution as well as the company contribution). I want to know that how should I pay zakah on it, considering the amount I got is more than the nisab. Who is entitled to receive Zakat. Lump Sum Payments in Terms of Compulsory Pension and Provident Funds. Zakat is payable on lump sum payments received by an employee upon retirement, or by his dependent, if the money is held by such recipient for a period of one year as from the date of receipt thereof/ No Zakat is payable for.

General Provident Fund is such a scheme where a certain percentage is deducted from the government servant from his salary on monthly basis, then is kept by the government and at the time of the Author: Naila Nazir.

Answer My ordinary understanding on the subject is that the part of the contribution towards provident fund done by the employee is his wealth for which he should pay Zakat. However, the other part contributed by the employer is a promise and would only become a part of the employee’s wealth when it is handed over to him.

Zakat Calculation on Income: For the calculation of zakah on income Muslim scholars agreed that zakah from labor and professions can be calculated at the rate of %.8 As such three different approaches were given to validate zakat payment on income as follows: 1.

% from the total annual gross income which exceed nisab. Secondly, whether the Zakat fund is managed in a way that would reduce the poverty rate, dependency, and create sustainable employment for the intended recipients as stated in the Holy Qur'an.

If the payments are deducted from the salary at source, so that the money never comes into the possession of the contributor, no zakat is due on the payments, nor is it due on the amount that accumulates in the pension or provident fund. In the following section on "Interest on Provident Fund", the issue has been discussed in detail It may, therefore, be noted that in respect of zakat, the amount of employer's contribution and the interest earned on the aggregate amount, will be treated in a similar fashion as the employees contribution,Zakat will be payable when the amounts have been actually received by the employee and no zakat.

Q: My company has a compulsory pension/provident fund that I am compelled to join. There is no option not to join. I was aware of it when I joined the company, and I signed all the necessary paperwork.

Does it still count as a pension fund that is forced upon me, and do I still need to pay Zakaah on the payout. If Zakaah needs to be paid, then on what amount. However in regard to monies set aside for pensions before retirement, Zakat would be due for payment if the pension assets are being invested on behalf of the pension holder and if there is a.

(15) A sahib-e-nisab may pay either to a Zakat Fund or directly to those eligible under Shariah to receive Zakat so much of the Zakat due under Shariah as is not deductible at source under the Act, on assets mentioned in Second Schedule. CHAPTER III. USHR. Charge and collection of Ushr.–.

With regards to Zakāt on mandatory pension funds, you are neither obligated to pay Zakāt for the previous years nor upon receiving the money. There is no separate Zakāt for monies invested in a mandatory pension fund.

At the end of your Zakāt year, the pension amount that you have withdrawn, should be added to your assets and Zakāt should. The ruling of a provident fund in Islam is same as that of a pension fund.

The pension scheme might work in the following two ways: The government or the employers by law deduct a certain amount from the employee’s salary every month or year etc This would not be considered as riba (interest). If the entire provident fund balances are invested in the shares of the joint stock companies this may amount to exposing the provident fund balances to unnecessary risk.

At present, some employees of banks and other departments give an option that they will not receive interest on their provident fund.

cycle (hawl) is obligated to pay Zakat. Similarly, if one does not have Nisab in their possession for the entire Hijri lunar year cycle, even if for just one day - they do not have to pay Zakat and are actually eligible to receive Zakat.

Nisab is nothing but a yardstick to find out who should pay Zakat. The delay in crediting of EPF interest to your account will affect compounding of interest.

(Priyanka Parashar/Mint) EPFO starts crediting interest to provident fund accounts. Deduction for Zakat. Schedule of MTD Where an employee has made zakat payments through salary to the religious authority, the employer upon receiving evidence of such payments may set-off those payments against the amount of tax to be deducted for the.

Add your total Roth amount minus earnings lesser than 5 years as a line item to your Zakat calculation and pay % on that amount. Easier still would be to add the entire value of the Roth as a line item, and consider the extra paid on earnings as a pre-payment of Zakat on those funds.

As one of the five pillars of Islam, zakat is mandatory giving; all Muslims eligible to pay it must donate at least % of their accumulated wealth for the benefit of the poor, destitute and. Use the automated payment line You'll need your debit card, customer number and date of birth.

You can make a payment for someone else as long as you have their customer number and date of birth. The payment card needs to be yours and registered to your address.This type of Provident Fund is maintained by private sector or organizations.

Payments from such Provident fund are exempted from Income Tax. Unrecognized Provident Fund No exemptions are available but there is no yearly taxability. Employer's contributions and interest thereon will be taxable at the time of payments to the employees only.

Provident Fund: Sahib-e-Nisab: Zakat Year: “Means year according to the Hijra calendar for which Zakat is chargeable, commencing on the first day of Ramadhan-ul-Mubarak and ending with the last day of the following Sha’ban-ul-Moazzam.

8.