Determination of zakah.
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One of our brothers/sisters has asked this question:
As you are well aware of the fact that the rate of the gold varies almost every day. My question is how to calculate the zakah in such situation? Please also describe how to calculate the zakah if paying once in a year or every month where the rate of the gold changes every day even up to 30%? My second question is whether zakah is applicable on the money invested in a business which is subject to both profit & loss?
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Determination of zakah
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Your Question: .As you are well aware of the fact that the rate of the gold varies almost every day. My question is how to calculate the zakah in such situation?
The best practice would be to fix one day of the Islamic Calendar to determine or calculate ones zakah liabilities for the year, and whatever happens to be the market price of ones excess assets on that day should be used to determine ones zakah dues for the year.
Your Question: .My second question is whether zakah is applicable on the money invested in a business which is subject to both profit & loss?
If one has invested some capital in a business, that capital would indeed be considered a part of their asset. Regardless of whether one makes a profit or loss from that business, one would indeed be liable to pay zakah annually on ones excess assets.
For example say one invests $10,000.00 in a business; and the business declares a loss of $1,000.00 for the year.in such a situation, at the end of the year the asset of the person would be $9,000.00 and the person would be liable to pay 2.50% of only $9,000.00 for that calendar year.
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