Answered by Shaykh Faraz Rabbani
I have a question about calculation of zakat on running bank balance. One of the conditions for zakat is that asset should be there for a period of 1 year. Now if the bank account maintains a running balance with salary coming in and expenses going out, its difficult to track if the same money was there for more than an year. How should that person calculate the zakat on these funds. The assumption is the person remains sahib e zakat for the whole year.
Walaikum assalam,
1. It is only a condition that one have a net zakatable amount (nisab) at the beginning and end of the 1 year zakat period (hawl).
2. Fluctuations in between are of no consideration, unless one’s net amount becomes zero, in which case, on must wait until one possesses a net zakatable amount (nisab) for one’s zakat period (hawl) to re-start.
3. Zakat is due on the net zakatable amount one possesses at the end of the zakat period (hawl).
Walaikum assalam,
Faraz Rabbani