Giving Zakat and charity (Sadqa, donations) not only fulfills spiritual duty but can also reduce your taxable income legally in Pakistan. The Income Tax Ordinance allows tax deductions on eligible donations to approved organizations.
How Zakat and Charity Help Reduce Your Tax
Donations to approved institutions are deductible under Section 61 of the Income Tax Ordinance.
You must have bank receipts and proper documentation.
The deduction can be up to 30% of taxable income (for individuals).
Common Eligible Donations
Edhi Foundation, Shaukat Khanum, LRBT, Saylani Trust, and many more approved by FBR.
Zakat paid directly to deserving individuals is not deductible, unless through a registered organization
Tax Return Filing FAQs
Every salaried person, freelancer, business owner, or property holder earning taxable income must file a tax return under FBR law.
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