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:

Mu` meneen Brother,

As Salaam Aleikum wa Rahmatullahi wa Barakatuh. (May Allah`s Peace, Mercy and Blessings be upon all of you)

RAMADAN KAREEM.

My Question is

1-How do you calculate the zakkat that you are expected to give the poor? 2-If you have debt on you (owing some money like a car loan or house mortgage), are you still supposed to give out zakkat?

please could you give me the details and expectations and also at what stage in ones life he is expected to start giving out zakkat

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Answer:

Nisab for zakah

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.

Q-1: How do you calculate the zakkat that you are expected to give the poor?

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 period of one full lunar 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 (no zakah)
2. the value of the car/vehicle one uses on a regular basis (no zakah)
3. the value of the furniture and fixtures one uses on a regular basis (no zakah)

Thus for example say the person has the following assets (which have been in their ownership for one full lunar year) and liabilities:

1. Cash Savings: 10,000.00
2. Current Market Value of Properties (other than the house one lives in): 50,000.00
3. Current Market Value of Properties Investments (stocks, shares, etc.): 10,000.00
4. Current Market Value of Jewelry: 5,000.00
5. Outstanding loans: 12,000.00

The net excess assets for the person for the year would be (10,000 + 50,000 + 10,000 + 5,000) or 75,000.00 – 12,000.00 (loans) or 63,000.00; and he/she would be liable to pay 2.50% on 63,00.00.00 or 1,575.00 as ‘zakah’.

Q-2: If you have debt on you (owing some money like a car loan or house mortgage), are you still supposed to give out zakkat?

The current market value of all of one’s zakatable assets less one’s loans (or debts, or liabilities) would equal their net excess assets; and one would be liable to pay 2.50% ‘zakah’ on only one’s net excess assets which have been in one’s possession for a period of one full calendar year.

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