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:
I want a clarification regarding zakah. suppose I have Rs. 1,00,000 in my bank fixed deposit. after one year I paid 2.5 % of he money as Zakah. The balance left is Rs. 97,500. I do not spend the money and so this money remained with me for another one year.. Now tell me: shoul I take out zakah again from this money?
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Indeed, zakah has to be paid annually on ones excess assets. Assuming that the 100,000.00 cash is ones only asset, indeed after one year one would be liable to pay its zakah at the rate of 2.50%.
If one does not utilize the balance money, indeed in year-2, one would be liable to pay zakah on their balance 97,500.00 at the rate of 2.50%..
That is precisely why the Messenger of Allah (saws) guided the guardians of the orphans who had inherited wealth, that they trade with the orphans wealth in order to avoid depletion through the annual zakah.
Amr ibn Shu'aib reported from his father from 'Abdullah ibn 'Amr that the Messenger of Allah (saws) said: "One who becomes the guardian of an orphan with property must trade on their behalf,and not leave it passive, in order to avoid depletion of the property by zakah."
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Your brother and well wisher in Islam,