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:

Assalam wa alaikum to you

 

Hi I would like to know about Zakaat..

 

I know  that If I have money in d bank for a year above $600, I have to pay zakat.. but if the balance doesnot change much for 2 or 3 years, how will zakaat be paid?? M I liable to pay??

 

Plis advise

 

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Answer:

 

Zakah calculation

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.

 

Every believer, regardless of whether man, woman, or child, who has excess wealth (over the ‘nisaab which is appx US$1,000.00) of their own, is liable to pay a 2.5% annual zakat of their nett excess wealth in Shariah.

 

Zakat is not determined from one’s earnings or profits, but rather on one’s net excess wealth which is left over after paying all their expenses, and it has been in their possession for a period of one calendar year. There is no zakah liable on the house one lives in, or the furniture and fixture one uses in their house, or the car one drives, etc.  But if one has property which one has bought as an investment, or spare vehicles other the one one drives, or jewelry, or any other excess asset…then zakah would be liable on these excess wealth and property.

 

Any asset, or wealth, or cash, or savings, which are left over after all of one’s expenses are paid, and that excess savings and wealth has been in their possession for one full calendar year is liable for payment of annual ‘zakat’ at 2.5% of its value.

 

Thus the basic formula to calculate zakah is as follows:

 

All Assets (except the house one lives in, vehicle one uses, etc.) minus all loans = Nett Excess Assets.  It is on the market value of these Nett Excess Assets upon which the annual zakah of 2.5% is due.

 

Your Question: I know  that If I have money in d bank for a year above $600, I have to pay zakat..

If the total Nett Asset Value (Assets-Liabilities) of an individual is more than US$1,000.00, one is liable to pay annual zakah on their Nett Excess wealth annually at the rate of 2.5%.

 

Your Question: but if the balance doesnot change much for 2 or 3 years, how will zakaat be paid?? M I liable to pay??

If the value of one’s Total Assets is only the cash of US$600.00, then their Nett Worth will be less than the prescribed ‘nisaab’ in Shariah, and no zakah would be liable on that person.

 

But if in addition to the US$600.00 one has in cash, the person has investments, or shares, or has investments in some property or business, or has jewelry, etc.; provided their Total Assets are worth more than US$1,000.00, then one would have to determine the full market value of all their Assets and pay 2.5% of that value as their annual zakah.

 

Your Question (again): but if the balance doesnot change much for 2 or 3 years, how will zakaat be paid?? M I liable to pay??

If the total value of one’s Assets is only the cash of US$600.00, then such a person is liable to pay no zakah.

 

But lets say the value of one’s total assets was in cash to the tune of US$2,000.00, then such a person would be liable to pay 2.5% of US$2,000.00 every year as 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