Check below answers in case you are looking for other related questions:

Assalamualikum. We were not rich.At present we do have some money in bank and we do have some auto loan ( from bank ). Please let us know how we calculate our Zakat.

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:

Assalamualikum. We were not rich.At present we do have some money in bank and we do have some auto loan ( from bank ). Please let us know how we calculate our Zakat.

 

thank you

your sister in islam

 

 

(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:

 


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.

 

In principle, zakah is to be paid every year on the excess wealth of every believer, man and woman, after it has been in their possession for a period of one calendar year.

 

If the total nett worth of any believer is more than the prescribed nisaab of 7.5 tolas of gold (app. 85 grams or app. Value US$1,000.00), then the person is liable to pay the obligatory zakat of 2.5% on their excess wealth which has been in their possession for one full calendar year.

 

If ones total nett worth is less than the prescribed nisaab, then one does not have to pay any zakaah on their wealth; but if their nett worth is more than the prescribed nisaab, then indeed one would have to pay the zakaah on their wealth that has been in your possession for a period of one calendar year.

 

Say for example that you have (equivalent of) US$2,000.00 cash in the bank and that is your only excess wealth and possession, and the loan that you have outstanding is worth US$500.00. Thus your total nett worth will be ($2,000 - $500) $1,500.00, and this cash has been in your possession for a period of one year.

 

In such a situation, because your total nett worth is more than the prescribed minimum nisaab or approximately US$1,000.00, you will be liable to pay your zakah annually of 2.5% of $1,500.00 or $37.50.

 

But if the cash you hold in the bank is $1,000.00 and that is your only excess asset, and the outstanding loan is $500.00.then your total nett worth will be ($1,000 - $500) $500.00. Now because your total nett worth is below the prescribed minimum nisaab, you will not be liable to pay any zakah for the current year.

 

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


Related Answers:

Recommended answers for you: