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:

Assalamualaikum
We all know that Zakat is calculated on the value of one`s Wealth that has passed in one`s possession for a period of one year.

1. Is the year calculated from the first month of islamic calendar or it can be Ramadan to Ramadan or it can be the financial year which correlates with

the year end of one`s business.

2. In the constitution of wealth, are there some items exempted like House in which one is dwelling or diamonds which are made of stones.

Warm Regards

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Answer:

Zakah calendar year

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: Is the year calculated from the first month of islamic calendar or it can be Ramadan to Ramadan or it can be the financial year which correlates with the year end of one`s business.

There is absolutely no condition or obligation in Shariah Law that zakah must be calculated or determined from the first month of the Islamic Calendar, or the month of Ramadan, etc.; one may determine any date one wishes or is convenient for them and determine the zakah from that specified date. If one wishes to determine the zakah calculations from the end of one’s business financial year there is absolutely no harm.

Q-2: In the constitution of wealth, are there some items exempted like House in which one is dwelling or diamonds which are made of stones.

Any product or object that one uses on a regular basis to live their life, like a house, its furniture and fixtures, a car, one’s clothes, etc. are all exempt from zakah. Zakah is only due on one’s excess wealth which has been in one’s possession for a period of one full calendar year.

Thus if a person has an extra house or houses other than the house one resides in, or extra car or cars other than the one which he uses….then extra houses and cars will be deemed one’s excess wealth and annual zakah will due upon the market value of those extra possessions.

Diamonds, gems, silver, gold, jewelry and precious stones, etc. will be considered as excess wealth and thus annual zakah will be due upon the value of all such possessions.

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