Is Zakaat paid on income?

Answer

Zakaat is not paid on income. Zakaat is paid on Zakaat assets which one possesses after 12 months – each year. Zakaat assets are cash, gold, silver and stock-in-trade. If at the end of 12 Islamic months these assets amount to the Nisaab value or more, then 2.5% Zakaat is paid. Zakaat is not paid on income which has already been spent during the course of the year. In your case there is no Zakaat to be paid.