Home Zakat Information 12.17 Liabilities which may be deducted
Zakat Information
12.17. Liabilities which may be deducted
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Liabilities which may be deducted


Liabilities, for Zakat purposes, may be divided into two categories:


a) Liabilities incurred in acquiring assets which are exempt from Zakat; for example mortgage on immovable property; or installments due under credit sale agreements in respect of plant and machinery, and fittings and fixtures. The amounts of such liabilities are, in the light of modern business conditions, not deductible. If such liabilities were to be deducted, then many businessmen would pay little or no Zakat.


b) Liabilities incurred in acquiring assets which are subject to Zakat; for example, trade creditors (suppliers of business merchandise inventory), and bank overdraft. Such liabilities should be deducted from the total value of the assets subject to Zakat in order to arrive at the net amount on which Zakat is payable. In this regard, the manner in which such a liability is secured (e.g. by registering a bond over immovable property) should be ignored.


12.16 Income Tax

12.18 Buried Precious Metals
or Minerals (Rikaz)



Sitara-e-Isaar Awarded to Hidaya Foundation

Hidaya Foundation was awarded Sitara-i-Eisaar (Star of Sacrifice) by the Government of Pakistan, in recognition of the results-oriented relief efforts during the 2005 earthquake in Pakistan.

Combined Federal Campaign

Hidaya Foundation is a non-profit 501(c)(3) with FEIN 77-0502583. All cash and in-kind donations are tax deductible. Hidaya puts it’s best effort to utilize the funds donated for a specific project, sometimes circumstances dictate we use funds otherwise.