What is the purification ratio?

Purification ratio is the percentage of non-shariah compliant income in the total income of the company. This amount should be deducted from the dividend income and price appreciation upon selling the shares and given in charity to purify the income from the share investment in those shares. The charity should not be included in the zakat paid as this is not halal income. This charity should be given to specific purposes wherein paying of riba income is allowed. This should not be given for masjid and other noble causes.

Leave a Reply

Your email address will not be published. Required fields are marked *