Mu' meneen Brothers and Sisters,

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One of our brothers/sisters has asked this question:

AoA...

I have some question about Zakat.

Firstly, when should zakat be paid? Usually i have seen it being paid in Ramadan, but isnt the 11th month of the islamic month for zakat? please clarify this.

Second, when calculating zakat, which assetts should be counted? I am trying to calculate my household`s zakat so please help me out. i understand zakat is applicable on jewelry and bank balance. but is it applicable on

1- the capital being used for business
2- the assetts and stocks being used in business
3- property (house, etc both in use and vacant)
4- household belongings, particularly cars, furniture, appliances, etc.

my father is of the opinion that of the above, zakat should be applicable on all moveable property, thus all of No. 4 in addition to jewelry and bank balance. my opinion is that in addition to that, zakat shold be applicable on the property owned but not used, like a house owned but that is vacant. Please give a detailed answer

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Answer:

Zakah issues

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.

Q-1: Firstly, when should zakat be paid? Usually i have seen it being paid in Ramadan, but isnt the 11th month of the islamic month for zakat? please clarify this.
There is no particular injunction in Shariah about the time or month when the zakah dues should be paid. The guidance of the Messenger of Allah (saws) is that whenever one has excess wealth in one’s possession for a full period of twelve calendar months, the zakah payment on this excess wealth becomes due.

The reason most people pay the zakah dues in Ramadan, is because in this blessed month Allah Subhanah has promised a manifold reward to the doers of good deeds. If one chooses to pay ones zakah dues in Ramadan, or in any other month of the year, or in installments over the period of the year; he will have his full reward from Allah Subhanah, Insha Allah. The important thing is that this obligatory zakah due should be paid on one’s excess wealth which has been in one’s possession for a period of one calendar year; and Islam has made it easy and left it upto the person whether he wishes to pay it during Ramadan or at any other time during the year.

Q-2: Second, when calculating zakat, which assetts should be counted? I am trying to calculate my household`s zakat so please help me out. i understand zakat is applicable on jewelry and bank balance. but is it applicable on
1- the capital being used for business
2- the assetts and stocks being used in business
3- property (house, etc both in use and vacant)
4- household belongings, particularly cars, furniture, appliances, etc.
Beloved brother in Islam, the general instruction is that zakah dues are to paid on one’s excess wealth which has been in one’s possession for a period of twelve calendar months.

The house one lives in, the furniture one uses, the car one uses, the jewelry one uses, or all articles and assets one uses as his daily necessities have no zakah upon them. It is only the excess wealth which one has accumulated and possessed for a period of one calendar year that is applicable for zakah dues.

Ref: 1- the capital being used for business
If one has his own business, then zakah is not calculated on the capital amount invested; but rather the nett worth of business; ie. the assets of the business less the liabilities of the business. If the person is a partner in a business, then his zakah will be calculated according to his share of the nett worth of the business.

Ref: 2- the assetts and stocks being used in business
If one owns the business, the zakah will be due on one’s nett worth rather than the worth of ones assets and stocks. The nett worth of the business would be calculated as the value of one’s stocks and assets, less the liabilities of the business.

Ref: 3- property (house, etc both in use and vacant)
There is no zakah on the house one uses and lives in himself; zakah is only due on the houses or properties other than the one house which is occupied by the owner himself. For example if a believer has two houses; one he occupies with his family and the other is on rent or vacant; the zakah is only due on the market value of the house which is rented or is vacant, and not on the house which one occupies himself.

Ref: 4- household belongings, particularly cars, furniture, appliances, etc.
There is no zakah on the household belongings like furniture, appliances, etc. of the house one occupies and uses on a regular basis. Similarly there is no zakah on the car one uses himself.

If one has extra furniture, appliances, cars, etc. other than the ones which one uses himself, zakah will be due only on these extra assets.

Q-3: my father is of the opinion that of the above, zakat should be applicable on all moveable property, thus all of No. 4 in addition to jewelry and bank balance. my opinion is that in addition to that, zakat shold be applicable on the property owned but not used, like a house owned but that is vacant. Please give a detailed answer

Beloved brother in Islam, zakah is due on all of ones excess wealth, other than the assets one uses himself; regardless if these extra assets are moveable or immoveable. In other words, zakah will be calculated on the nett worth of the person (which includes one’s cash in the bank and one’s excess jewelry, etc.), less the assets like the one house, one car, all the furniture and fixtures of one’s house which one uses, etc.

Whatever written of Truth and benefit is only due to Allah’s Assistance and Guidance, and whatever of error is of me. Allah Alone Knows Best and He is the Only Source of Strength.

Your Brother in Islam,

Burhan