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Zakah Calculations.

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One of our brothers/sisters has asked this question:

Assalamualiakum,

Jazakallah for the reply, By Allah's grace & your support i understood how to calculate zakat, one more question on Zakat,

Lets say i have my own house which is been given for rent due to Less dimension of house im living in a different house taken to Rent, in this case how can one calculate Zakat..

If one has a vehicle used for Commercial purpose  then how can we calculate Zakat??

Thanks..

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Zakah Calculations

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If the total net worth of any believer (man, woman, or child) is more than the prescribed nisaab of 7.5 tolas of gold (app. 85 grams or app. Value US\$2,100.00), then the person is liable to pay the obligatory annual zakah of 2.5% on their excess wealth which has been in their possession for a full calendar year.

If the total net worth of any believer is less than the prescribed nisaab, he/she is not liable to pay any zakah until their net worth exceeds the prescribed nisaab.

For the purpose of determining zakah, the Net Excess Assets would be the current market value of all of ones assets (properties, investments, jewelry, cash, etc.) except:

1. the value of the house/s one owns and actually lives in (no zakah)
2. the value of the car/vehicle one uses on a regular basis (no zakah)
3. the value of the furniture and fixtures one uses on a regular basis (no zakah)

Your Question: Lets say i have my own house which is been given for rent due to Less dimension of house im living in a different house taken to Rent, in this case how can one calculate Zakat..

If you own a house and live in it yourself, regardless of the value of the house, you are not liable to pay any zakah on this house.for the house one lives in oneself is exempt from zakah in Shariah.

If you own a house, but do not use or live in it yourself..regardless of whether you chose to leave this house empty or give it for rent to another, this house will be considered as your excess asset and you would be liable to pay zakah on the fair market value of the house at the rate of 2.50%.

The rent you pay to live in a rented house and the rent you receive from the tenant you rented your house to is immaterial when determining zakah.

Assuming that market value of your house which you have given on rent to another is worth 100,000.00 today; you would be liable to pay 2.50% or 2,500.00 as zakah for this house for the year.

Your Question: If one has a vehicle used for Commercial purpose  then how can we calculate Zakat??

If the vehicle is used for your and your familys needs, there is no zakah on this vehicle.as the vehicle one uses for ones needs is exempt from zakah in Shariah.

But if you are employing the vehicle for commercial purposes, then it would be considered as an asset and you would be liable to pay 2.50% zakah on the fair market value of the vehicle.

Lets assume that the cost price of the vehicle is 20,000.00; and the fair market value of this vehicle if you sold it today would be 10,000.00.you would thus be liable to pay 2.50% of 10,000.00 or 250.00 as zakah for the year.

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Your brother and well wisher in Islam,

Burhan