FAQs

Question

How is purging of impure income calculated by TASIS

Answer

TASIS has developed and applied a method which can be considered a modification of the AAOIFI method, to make it more just and comprehensive. This method requires the purging of impure income earned per share of a company held by an investor pro-rated over the pro rata period for which the shares were held in his portfolio by that investor.
While the AAOIFI method too enables complete purging of the interest income earned, it unfortunately puts the entire burden of the purging solely on the investor who held the share when the dividend was declared and not pro rata on all those investors who held the share during different parts of the year when the interest was actually earned.


Allah Knows Best...