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Could you pleas advise whether zakath is applicable in this situation during this Ramadan.

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 alaikum brother, i had some money invested in a share business for 5 years. Recently i took that money and invested in a busines. More or less the the amount can be retuned in 3 years. Meanwhile i will get Insha ALLAH certain profit amount from October 2007 onwards. Could you pleas advise whether zakath is applicable in this situation during this Ramadan. Jazaka ALLAH 

 

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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.

 

In principle, zakah is to be paid every year on the excess wealth of every believer (man, woman, or child) 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 a full calendar year.

 

Zakah is not liable on the returns or profits made from the investments, but rather on the current market value of ones net worth.

 

Assuming you invested $10,000.00 in the business and after five years your investment was worth $15,000.00.you took that amount and invested in a business. Thus for this current year you would be liable to pay the annual zakah on your excess net worth or $15,000.00 at the rate of 2.50% or #375.00.

 

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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