Mu' meneen Brothers and Sisters,

As Salaam Aleikum wa Rahmatullahi wa Barakatuh. (May Allah's Peace, Mercy and Blessings be upon all of you)

 

One of our brothers/sisters has asked this question:

I want a clarification regarding zakah. suppose I have Rs. 1,00,000 in my bank fixed deposit. after  one year I paid 2.5 % of he money as Zakah. The balance left is Rs. 97,500.  I do not spend the money and so  this money remained with me for another one year.. Now tell me: shoul I take out zakah again from this money?

 

(There may be some grammatical and spelling errors in the above statement. The forum does not change anything from questions, comments and statements received from our readers for circulation in confidentiality.)

 

Answer:

 

Annual zkaah

In the name of Allah, We praise Him, seek His help and ask for His forgiveness. Whoever Allah guides none can misguide, and whoever He allows to fall astray, none can guide them aright. We bear witness that there is none worthy of worship but Allah Alone, and we bear witness that Muhammad (saws) is His slave-servant and the seal of His Messengers.

 

Indeed, ‘zakah’ has to be paid annually on one’s excess assets.  Assuming that the 100,000.00 cash is one’s only asset, indeed after one year one would be liable to pay its ‘zakah’ at the rate of 2.50%.

 

If one does not utilize the balance money, indeed in year-2, one would be liable to pay ‘zakah’ on their balance 97,500.00 at the rate of 2.50%..

 

That is precisely why the Messenger of Allah (saws) guided the guardians of the orphans who had inherited wealth, that they trade with the orphan’s wealth in order to avoid depletion through the annual ‘zakah’.

 

Amr ibn Shu'aib reported from his father from 'Abdullah ibn 'Amr that the Messenger of Allah (saws) said: "One who becomes the guardian of an orphan with property must trade on their behalf,and not leave it passive, in order to avoid depletion of the property by ‘zakah’."

 

Whatever written of Truth and benefit is only due to Allah’s Assistance and Guidance, and whatever of error is of me alone.  Allah Alone Knows Best and He is the Only Source of Strength.

 

Your brother and well wisher in Islam,

 

 

Burhan