Home » Hanafi Fiqh » Askimam.org » Should I have paid zakat on my accumulated cash. Considering the circumstances, I have been saving to buy a house. And to buy a house was not possible until now.

Should I have paid zakat on my accumulated cash. Considering the circumstances, I have been saving to buy a house. And to buy a house was not possible until now.

Answered as per Hanafi Fiqh by Askimam.org

Assalam o Alaikum, Please consider the following facts and let me know how much Zakat I should have paid. In 2000, I found a job in England. Prior to starting this job I did not have any money. I worked there for 3 years, and I managed to save 30,000 pounds. During these 3 years of employment, I paid my zakat based on 2.5 % of my annual income. Whilst I was working in England, I did not buy a house. Because I knew that I could only work in Englad for 3 years. Now, I have moved to another country which is where I intend to live. I am thinking of using my savings of 30,000 pounds to buy a house. This year, I only paid Zakat on my annual income, and not my accumulated cash and cash equivalents. Should I have paid zakat on my accumulated cash. Considering the circumstances, I have been saving to buy a house. And to buy a house was not possible until now. Please advise. Thank you.

Answer

Zakaat is paid on accumulated cash, not on income. You stated that in 2000 you started working, thus you should work out in what month (Islamic, not solar) you had accumulated cash equivalent to the nisab. This month will now be your zakaat month. If for example it was April 2000 which corresponds with Muharram 1421, then Muharram is your Zakaat month.

Now you have to work out how much accumulated cash you had in Muharram 1422(April 2001) and work out 2,5 % of that.. Do the same for Muharram 1423(March 2002) and this Muharram 1424 (March 2003).

After working out these 2,5% of these 3 amounts, compare it to the amount that you paid in the last 3 years. If you paid more then you can carry it over for next year’s Zakaat and if less then you have to pay the difference. You will now pay zakaat next year on the amount of cash you have in Muharram.

and Allah Ta’ala Knows Best

Mufti Ebrahim Desai

Original Source Link

This answer was collected from Askimam.org, which is operated under the supervision of Mufti Ebrahim Desai from South Africa.

Read answers with similar topics: