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I own some gold, but as i stay out of country it is being kept safe with my inlaws in a bank locker, for the last 1-1/2 year it is with them only

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:

Assalamalaikum, i own some gold, but as i stay out of country it is being kept safe with my inlaws in a bank locker, for the last 1-1/2 year it is with them only, so now who has to pay zakat on it, me or my inlaws, as i heard that the person who caretakes should pay, kindly inform me plz.

My other doubt is, my mother owns an english medium school, and our residence in on the first floor of the school building, how to take zakat on it, we have also taken heavy loans for the development and for the construction of school and for the school bus, which we are paying monthly, is zakat applicable or not as we have huge debts to pay, kindly shower nessary information, thanking you, Allahafiz,

 

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Answer:

 

Zakah Calculations

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Your Question: Assalamalaikum, i own some gold, but as i stay out of country it is being kept safe with my inlaws in a bank locker, for the last 1-1/2 year it is with them only, so now who has to pay zakat on it, me or my inlaws, as i heard that the person who caretakes should pay, kindly inform me plz.

It is the duty and responsibility of the believer who owns the property and not the caretaker of that property to pay the annual zakah dues on the value of their excess possessions.

 

Unless you have given the gold to your in-laws as a gift or sold it to them and it does not belong to you anymore, you are liable and responsible to pay the zakah dues on your possession, provided it has been part of your excess wealth for a period of one calendar year. If your in-laws or anyone else is simply a caretaker of your possessions or wealth, they are in no way liable to pay zakah dues on it, simply because it does not constitute as part of their weath.

 

Your Question: My other doubt is, my mother owns an english medium school, and our residence in on the first floor of the school building, how to take zakat on it, we have also taken heavy loans for the development and for the construction of school and for the school bus, which we are paying monthly, is zakat applicable or not as we have huge debts to pay, kindly shower nessary information,

Dear and beloved brother, in principle zakah is due on the net excess wealth which has been in your possession for a period of one year. The house one lives in, or the car one drives for personal use, etc., regardless of their value are not liable for zakah in Shariah Law.

 

Thus lets assume the current value of the school building is $100,000.00, the value of your residence which happens to be in the school building is $20,000.00 and the loans you have outstanding for the development of the school building is $50,000.00. In such a case, the zakah will be counted as follows:

 

Assets = $100,000.00, less the value of your residence = $ 20,000.00, less the outstanding loan of $ 50,000.00.thus annual zakah would be liable on your net excess asset value of $30,000.00 at a rate of 2.5%, ie. $750.00.

 

Whatever written of Truth and benefit is only due to Allahs 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

 

 

 


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