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ZAKAAT CALCULATION

Answered according to Hanafi Fiqh by DarulUloomTT.net

QUESTION:

As Salam Alaikum,
I have  questions regarding Zakat calculations:
Question 1: From the annual calculations of zakat , do we need to deduct the following amount as deductible liabilities from my Assets in order to find the net value on which zakat ( 2.5% ) will be applicable ? :

The Liabilities as follows:

– Car Lease Payment ( Next 12 months )

– Apartment Rent Charges ( 12 months )

– Children School Fee ( 12 months )

– Tax Payable to Govt. ( Annual )

– Utilities Bills ( 12 Months )

– Other Liabilities ( Purchasing food commodities for oneself and his family – next 12 months )

Question 2 : I have booked the property for Investment in 2002 and paid its value through installments to next 10 years. In 2012 , I got possession of this property.
So zakat would be applicable on market value right after 2002 when i booked that property or starting from  2012 ( when i got the actual possessions of that property )

Please assist me. Thanks

               

ANSWER:

As Salaam Alaikum,

  1. Zakat is payable on your savings and not on monies which you have for your daily and monthly expenses.

With respect to depts or loans which must be paid, only such depts and loans will be deducted which are payable at the time you are paying Zakaat. You will not look ahead over the next twelve months and deduct the expenses which are yet to come about (over the period) if you are paying Zakaat at the present time.

People in general, normally pay their daily/monthly expenses from their monthly salaries/income, and would rarely dip into their savings which they have set aside.

Therefore, you will find that a person who receives a monthly salary will pay his car lease payment, apartment rental, school fees, utility bills, groceries and other daily requirements from his salary. These are monthly expenses which a person has to take out on an ongoing basis and will normally be taken out from one’s monthly salary. As for Government taxe, whenever this becomes due, a person pays it from his income which he receives on a regular basis.

As such, if you are going to pay Zakaat at this time, then you will pay on your savings that you have, and not on the monies you may have at home or in the bank from which you are using for your day-to-day and ongoing expenses like that which have been mentioned above.

Therefore, when paying 2 ½ % on your savings (as Zakaat), you will not deduct the expenses for the next 12 months for car lease payment, apartment rent  charges, children school fees, taxes to Government, utility bills, food, groceries etc.

If however, any, or all of the above expenses are taken out from your savings or monies from which you are paying Zakaat, then only those expenses that are due at that time ( of that month) can be deducted, not of the other upcoming months.

  1. Zakaat will be applicable when you become the owner of the property and got possession of it in 2012. If the property is for sale, then from that time, you will pay Zakaat on its market value. If it is not for sale, then no Zakaat will be payable on it. If the property is rented to others, then you will pay Zakaat on the rent received and not on the property.

 

And Allah Knows best

Mufti Waseem Khan

20/1/2017

This answer was collected from DarulUloomTT.net, which is operated under the supervision of Mufti Waseem Khan from Darul Uloom Trinidad and Tobago.

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