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
FAQs – Zakat & Charity in Tax Filing
1. Can I claim tax deduction for giving Zakat?
Yes, if Zakat is paid to an FBR-approved organization with proper receipt.
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2. How much tax deduction can I claim?
Up to 30% of your taxable income for individuals under Section 61.
3. Is Sadqa or donation to individuals allowed as deduction?
Only donations to registered charities are eligible for tax deduction.
4. What documents are required?
Bank transfer receipt, donation slip with NTN of the organization, and name of donee.
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5. Can FilerNow help adjust my Zakat in return filing?
Yes! Our experts ensure you get maximum legal deductions with peace of mind.
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