Zakat Contribution

Zakat is a religious, voluntary charitable contribution mandated in Islam, typically calculated as a fixed percentage of a Muslim’s wealth or income. In India, although Zakat is a recognized form of charity within the community, it is not eligible for deduction under the Income Tax Act. This means that taxpayers cannot reduce their taxable income by the amount donated as Zakat. Individuals may still make such contributions out of personal or religious obligation, but for tax purposes, these donations do not provide any tax benefit unless made through channels or organizations specifically recognized under Section 80G (which generally applies to registered charitable trusts).

Example: A Muslim taxpayer donates ₹20,000 to a mosque as Zakat. Since the mosque is not a registered charitable institution under Section 80G, the donation is not deductible, and the full income remains taxable.