TimelyUps · Trading Tools

Halal Dividend Purification Calculator

Received dividends from a Shariah-compliant stock? Purify the non-compliant portion and compute Zakat on your holding — in PKR.

Your Holding

From the company’s Shariah screening report
Purification = dividend × impure %. This amount should be given to charity without expecting reward. Zakat (2.5%) applies on the market value if held for trading.
Purification Due (donate)
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Halal Dividend Kept
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Zakat on Shares (2.5%)
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Frequently Asked Questions

What is dividend purification?

Even Shariah-compliant companies may earn a small fraction of income from non-compliant sources (e.g. interest). Scholars require purifying dividends by donating that proportion — commonly capped at 5% of revenue for KMI compliance.

How do I find the impure percentage?

Shariah screening providers (and KMI-All-Share methodology notes) publish the non-compliant income ratio per company. Your broker’s research may also carry it.

Is Zakat due on shares?

If you hold shares for trading (capital gain intent), Zakat is 2.5% of market value on your Zakat date. Long-term investors may instead pay on the company’s zakatable assets per share — consult a scholar.

Can I count purification as Zakat?

No — purification is charity (sadaqah) to cleanse income; Zakat is a separate obligation with its own calculation.

Disclaimer: For educational purposes. Shariah rulings vary — confirm with a qualified scholar for your situation.