Schedule C
Is Schedule C declaration the same as the Budget declaration?
No. The Budget and the Schedule C declarations are two separate and independent submissions.
Chanda Budgets are submitted at the Beginning of the Year, while the Schedule C is
submitted at the End of the Year, after the Fiscal Year End on June 30th.
A Chanda Budget represents an estimate of projected income or Chanda you will pay
during the Fiscal Year. The Schedule C Declaration reflects the Actual Take Home Income earned during the year and the Chanda that was paid on it, at a rate of 1/10 to ⅓
The Chanda Due in the Schedule C Declaration is NOT the Chanda Budget
The budget submission has no direct connection to the Schedule C declaration
If a Musi earns more during the year than the budget submitted at the beginning of the year, keeping Taqwa in mind, the Musi should pay Chanda Hissa Amad on this additional income as well, and should not report it as an excess payment in the Schedule C declaration.
Where a Musi has paid Chanda on what was actually earned — whether that was more or less than the budgeted amount — Option 1 of the Schedule C declaration should be selected, which states:
I have fully paid my due Chanda based on the total income derived from various sources, and there are no arrears or excess remaining.