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His question is he entitle to give zakat on cash in bank in India.

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:

Assalamualaikum

I have one question regarding zakat:  Actually my friend asked me the following question, I am forwarding to you because I used to receive mails through my friend, question and answers about Aahadees, zakat, prayer (trawih) and too many points which we must know.

 

My friend have cash in bank, gold and some property in India and he is getting rent from his property also, he got loan from three Saudi banks almost the same if converted SR to Indian rupees, which he have cash in bank in India.

 

His question is he entitle to give zakat on cash in bank in India.

 

(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 calculations

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.

 

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 zakah of 2.5% on their net excess wealth which has been in their possession for a full calendar year.

 

Except for the house one actually lives in, the vehicle one drives or uses, the furniture and fixtures one uses in their daily lives, the value of everything else one owns will be considered net excess assets upon which the annual zakah of 2.5% would be due.

 

Thus lets assume your friend has the following assets and liabilities:

 

Total Assets:

  1. Cash in bank in India = US5,000.00
  2. Current market value of gold and jewelry owned = US1,000.00
  3. Current market value of property owned in India = US$ 10,000.00.

 

Total Liabilities:

  1. Loan from bank in Saudi = US$5,000.00

 

Assuming the above are all the assets and the liabilities of your friend, his net excess assets would be:

 

US$ 5,000 + 1,000 + 10,000 5,000 = US$ 11,000.

 

Your friend will be liable to pay zakah on his net excess assets of US$11,000.00 at the rate of 2.50% or US$ 275.00.

 

The monthly/annual rent or revenue one receives from ones properties is absolutely irrelevant when determining zakah.

 

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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