Liabilities

X. Liabilities

If there is any Income Tax or Sales Tax payable to Government on the date of calculation of Zakat, such liabilities you may deduct before arriving at the net wealth. NOTE: Payment of Income Tax or Sales Tax does not fulfil your liability towards Zakat and you cannot deduct Income Tax payments from your net Zakat. Only tax liability, if due on the date of Zakat calculation is detectable from the nett assets. Zakat is apart from Income Tax and Wealth Tax payments. If you feel that certain I.T. demands are is disputed, unpaid and are pending in appeals, you may deduct the entire outstanding tax liability. But if the tax liability is reduced in appeal or otherwise in future you have to pay Zakat on such saving for all the years you have not paid Zakat.

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