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Home/Academy/Dividend Purification Guide

Dividend Purification Guide

Even Shariah-compliant companies may earn a small percentage of income from non-permissible sources. As an investor, you should purify your dividends by donating this portion to charity. Formula: Purification Amount = Dividend Received × (Non-Permissible Income / Total Revenue) For example, if a company has 2% non-permissible income and you received ₹1,000 in dividends, you should donate ₹20. Use Barakfi's free Purification Calculator at /tools/purification to calculate your exact amount.
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