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:

Assalamu alaikum, brother burhan,

I live in a company provided house in a foreign country, I have no own house, but my father in law has told my wife that one of his houses is to be given to her (I have not demanded) but not written to her name yet, in this condition, do we have to pay zakath on that house value ?

Also let me know if I need to take in to account those gold that my wife wear day to day while calculating the zakath ?

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Answer:

Zakah on gold jewelry

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.

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 one’s assets (properties, investments, jewelry, cash, etc.) except:

1. the value of the house/s one owns and actually lives in
2. the value of the car/vehicle one uses on a regular basis
3. the value of the furniture and fixtures one uses on a regular basis.

Your Question: I live in a company provided house in a foreign country, I have no own house, but my father in law has told my wife that one of his houses is to be given to her (I have not demanded) but not written to her name yet, in this condition, do we have to pay zakath on that house value ?

Respected brother, it needs to be clearly determined whether your father-in-law merely intends to give the house to his daughter (your wife), or he has already given that house to his daughter as a gift.

Secondly, it also needs to be determined whether your wife intends to use that house for her personal use, or she intends to rent or sell the house, an thus regards it as an investment…..for the house one actually uses to live in is not liable for ‘zakah’ in Shariah, but if the house is used for commercial benefits (trade, sell, rent, etc.), it will be liable for ‘zakah’ annually.

Unless and until your father-in-law actually hands over the possession of the house to his daughter, and/or transfer the said property in the name of your wife….the house would remain the property of your father-in-law and it is he who would be liable to pay its annual zakah.

If your father-in-law has handed over the possession of the house to your wife, and your wife intends to stay in the house herself and not derive any commercial benefit from that property, she is not liable to pay any zakah for that house. But if she intends to derive any commercial benefit from the said property, and the property has been in her possession for a period of one full lunar year, she would be liable to pay 2.50% ‘zakah’ on the market value of the property.

Your Question: Also let me know if I need to take in to account those gold that my wife wear day to day while calculating the zakath ?

Sunan of Abu-Dawood Hadith 1558 Narrated by Abdullah ibn Amr ibn al-'As

A woman came to the Messenger of Allah (saws) and she was accompanied by her daughter who wore two heavy gold bangles in her hands. He (saws) said to her: ‘Do you pay zakat on them?’ She said: ‘No.’ He (saws) then said: ‘Are you pleased that Allah may put two bangles of fire on your hands?’ Thereupon she took them off and placed them before the Prophet (saws) saying: ‘They are for Allah and His Messenger (saws) (to distribute to the poor as they will).’

If the value of total excess assets of your wife are above the prescribed value of ‘nisaab’, indeed your wife would be liable to pay the annual ‘zakah’ on her gold jewelry, regardless of whether she wears that jewelry everyday or not.

Whatever written of Truth and benefit is only due to Allah’s 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