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Determination of zakah.

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:

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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Answer:

 

Determination of zakah


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.

 

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.

 

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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