Overview — Cleansing vs Purification
This section explains the concept: cleansing (takhir) removes impermissible income from non-Shariah securities; purification (zakat) is an obligatory wealth tax on permissible assets.
Practical Case Studies
Comprehensive Comparison Table
| Aspect | Cleansing | Purification (Zakat) |
|---|---|---|
| Purpose | Remove haram income from non-compliant investments | Obligatory wealth tax on permissible assets |
| Islamic Status | Obligatory but earns no reward | Third pillar of Islam, earns reward |
| Rate | Variable based on gains/dividends | Fixed 2.5% (lunar year) |
| Applied To | Non-Shariah securities or those that became non-compliant | Shariah-compliant wealth exceeding nisab |
| Timing | Upon disposal or dividend receipt | Annually after one lunar year (haul) |
| Can be used for zakat? | No - haram money cannot count as zakat | Only from halal source |
| Knowledge matters? | Yes | No |
| Capital Gains Treatment | Must cleanse (knowing) or partially cleanse (unknowing) | Generally not zakatable (market-based) |
| Dividends Treatment | Must cleanse 100% (knowing) or post-announcement (unknowing) | Not directly zakatable (included in wealth) |
| Tax Benefit | None - must be anonymous | 100% tax rebate in Malaysia |
| Recipients | Baitulmal, public welfare projects | Eight zakat categories |