I know that If I have money in d bank for a year above $600, I have to pay zakat.
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Hi I would like to know about Zakaat..
I know that If I have money in d bank for a year above $600, I have to pay zakat.. but if the balance doesnot change much for 2 or 3 years, how will zakaat be paid?? M I liable to pay??
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Every believer, regardless of whether man, woman, or child, who has excess wealth (over the ‘nisaab which is appx US$1,000.00) of their own, is liable to pay a 2.5% annual zakat of their nett excess wealth in Shariah.
Zakat is not determined from one’s earnings or profits, but rather on one’s net excess wealth which is left over after paying all their expenses, and it has been in their possession for a period of one calendar year. There is no zakah liable on the house one lives in, or the furniture and fixture one uses in their house, or the car one drives, etc. But if one has property which one has bought as an investment, or spare vehicles other the one one drives, or jewelry, or any other excess asset…then zakah would be liable on these excess wealth and property.
Any asset, or wealth, or cash, or savings, which are left over after all of one’s expenses are paid, and that excess savings and wealth has been in their possession for one full calendar year is liable for payment of annual ‘zakat’ at 2.5% of its value.
Thus the basic formula to calculate zakah is as follows:
All Assets (except the house one lives in, vehicle one uses, etc.) minus all loans = Nett Excess Assets. It is on the market value of these Nett Excess Assets upon which the annual zakah of 2.5% is due.
Your Question: I know that If I have money in d bank for a year above $600, I have to pay zakat..
If the total Nett Asset Value (Assets-Liabilities) of an individual is more than US$1,000.00, one is liable to pay annual zakah on their Nett Excess wealth annually at the rate of 2.5%.
Your Question: but if the balance doesnot change much for 2 or 3 years, how will zakaat be paid?? M I liable to pay??
If the value of one’s Total Assets is only the cash of US$600.00, then their Nett Worth will be less than the prescribed ‘nisaab’ in Shariah, and no zakah would be liable on that person.
But if in addition to the US$600.00 one has in cash, the person has investments, or shares, or has investments in some property or business, or has jewelry, etc.; provided their Total Assets are worth more than US$1,000.00, then one would have to determine the full market value of all their Assets and pay 2.5% of that value as their annual zakah.
Your Question (again): but if the balance doesnot change much for 2 or 3 years, how will zakaat be paid?? M I liable to pay??
If the total value of one’s Assets is only the cash of US$600.00, then such a person is liable to pay no zakah.
But lets say the value of one’s total assets was in cash to the tune of US$2,000.00, then such a person would be liable to pay 2.5% of US$2,000.00 every year as zakah.
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