I purchased a plot last month for IRS850,000.00 in India but I hv borowed IRS270,000.00 loan against mortgaging jewellery to purchase the plot
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:
Dear
Sir,
I
purchased a plot last month for IRS850,000.00 in India but I hv borowed
IRS270,000.00 loan against mortgaging jewellery to purchase the plot, so on
which amount i hv to pay zakat & is it now itself or after one year. Also i
hd invested in my 2 childrn names bonds from UTI which mature after another
4yrs & its todays total value is IRS240,000.00, hv i to pay for zakat on
this too. please be kind enough to reply all above.
Jazakallah
khair.
Shoaib.
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errors in the above statement. The forum does not change anything from
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Answer:
Zakah issues
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, 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.
Your Question: I
purchased a plot last month for IRS850,000.00 in
Beloved brother, assuming that what you listed is all your
total assets, then zakah would be calculated as follows:
- Current
market value of the plot purchased = 850,000.00
- Borrowed
loan or debt = 270,000.00
- Jewelry
which has been kept now as mortgage for the loan = 300,000.00
- The
amount which you have so far invested in the ‘bonds’ = 240,000.00
Assuming that the above are your total assets and your
total borrowings, the determination of zakah would be as follows:
- 850,000
(plot) + 300,000 (the jewelry you own but kept as mortgage) + 240,000 (the
amount you have so far invested in the bonds) = INR 1,390,000.00 Total
Assets
- 270,000.00
loan or Total Liabilities
Thus your Total Nett Assets would be: (Total Assets) INR
1,390,000.00 (-minus) INR 270,000 (Total Liabilities) = INR 1,120,000.00 Total Nett Assets
Assuming that your assets have been in your possession for
a period of one full calendar year your zakah would be determined as: 2.5% of
INR 1,120,000.00 or INR 28,000.00 for the current year.
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
Wister