Mu' meneen Brothers and Sisters,
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One of our brothers/sisters has asked this question:
Dear brother in Islam, please could you clarify, how to calculate Zakat? I have a bank account, where my salary get paid every month. Throughout the year, there has been various transactions in the account. At some stage I had around only 2300 UAE Dirhams in the account and in recent month the funds sitting in my account are around 140,000 UAE Dirhams. Please tell me, how to calculate the Zakat, when the savings are not constant? Secondly, I also have a piece of land back home, for building purpose or in future I may sell it to buy bigger land to build on it. Do I have to pay Zakat on this piece of land as well?
I would really appreciate your help in this regards. Jazakumullah Kheir
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Your Question: Please tell me, how to calculate the Zakat, when the savings are not constant?
Respected brother, zakah is only liable when the savings have been in your possession for a period of one full lunar calendar year..thus if you wish to be precise, you could pay the zakah for your savings after those savings have been in your possession for a full lunar calendar year.
Alternatively, you could derive an approximate average amount by adding the savings you had for each of the twelve months, and then pay the zakah on the average amount at 2.50%.
Month 1: 2,300.00
Month 2: 3,000.00
Month 3: 5,000.00
Month 4: 8,000.00
Month 5: 15,000.00
Month 6: 30,000.00
Month 7: 50,000.00
Month 8: 20,000.00
Month 9: 100,000.00
Month 10: 140,000.00
Month 11: 120,000.00
Month 12: 140,000.00
Thus total 633,300.00 / 12 months = 52,775.00 average.
Your Question: .Secondly, I also have a piece of land back home, for building purpose or in future I may sell it to buy bigger land to build on it. Do I have to pay Zakat on this piece of land as well?
If you had bought the piece of land for investment purposes, then it would constitute an excess asset, and you would be liable to pay zakah annually on that land at the rate of 2.50% of its fair market value, provided the land has been your asset for a period of one full lunar calendar year.
Thus say you bought the land 5 years ago for 100,000.00 and the fair market value of the property today is 300,000.00.you would be liable to pay 2.50% of 300,000.00 or 7,500.00 as your zakah for the year.
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Your brother and well wisher in Islam,