I had saved money over a period of seven years for my son`s higher education. The money was saved in a education scheme and the funds were transferred to my account in April 2005.
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:
Dear
brother Burhan,
I had saved money over a period of seven years for my son`s higher education.
The money was saved in a education scheme and the funds were transferred to my
account in April 2005. These funds will be spent during the next year. Is
zakath payable on this money and how do I compute the zakath amount.
Appreciate your response in light on the Sunnah and Islamic jurispudence.
Jazakallah
khair.
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errors in the above statement. The forum does not change anything from
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confidentiality.)
Answer:
Zakah on savings
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 no one (no idol, no person, no
grave, no prophet, no imam, no dai,
nobody!) worthy of worship but Allah Alone, and we bear witness that
Muhammad (saws) is His slave-servant and the seal of His Messengers.
Dear and beloved brother in Islam provided the total net
worth of the believer is above the prescribed ‘nisaab’ of 7.5 tolas of gold
(appx 85grams of gold or equivalent value appx US$1,000.00), regardless of the
purpose of the savings, annual zakah would liable on the excess amount or
savings which have been in one’s possession for one calendar year.
Thus in your case, if you have not paid the zakah on the
savings for the seven years, you will need to calculate your contribution each
year to the savings and fulfill the zakah for each of those seven years. Once you spend the funds for whatever
purposes, then obviously there would be no zakah payable for the corresponding
year…but since you have been saving for the past seven years, it would be piety
and righteousness that not only you pay the zakah dues for this year on those
savings, but you should accurately calculate your contribution towards those
savings for each of the seven years and fulfill your past-zakah dues.
Thus if for example your annual contribution towards the
savings were $1,000.00 then your yearly past-zakah dues for the seven years you
held your savings would be as follows:
Years Your
Contribution Total Zakah due
Year-1 $1,000.00 $1,000.00 $ 25.00
Year-2 $1,000.00 $2,000.00 $ 50.00
Year-3 $1,000.00 $3,000.00 $ 75.00
Year-4 $1,000.00 $4,000.00 $ 100.00
Year-5 $1,000.00 $5,000.00 $ 125.00
Year-6 $1,000.00 $6,000.00 $ 150.00
Year-7 $1,000.00 $7,000.00 $ 175.00
Thus the total past-zakah dues liable upon you (according
to the above example) would be $700.00.
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