Assalamualikum. We were not rich.At present we do have some money in bank and we do have some auto loan ( from bank ). Please let us know how we calculate our Zakat.
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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:
Assalamualikum.
We were not rich.At present we do have some money in bank and we do have some
auto loan ( from bank ). Please let us know how we calculate our Zakat.
thank
you
your
sister in islam
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Answer:
Zakah calculation
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.
In principle, zakah is to be paid every year on the excess
wealth of every believer, man and woman, after it has been in their possession
for a period of one calendar year.
If the total nett worth of any believer is more than the prescribed ‘nisaab’ of 7.5 tolas of gold (app. 85 grams or app. Value US$1,000.00), then the person is liable to pay the obligatory zakat of 2.5% on their excess wealth which has been in their possession for one full calendar year.
If one’s total nett worth is less than the prescribed
‘nisaab’, then one does not have to pay any ‘zakaah’ on their wealth; but if
their nett worth is more than the prescribed ‘nisaab’, then indeed one would
have to pay the ‘zakaah’ on their wealth that has been in your possession for a
period of one calendar year.
Say for example that you have (equivalent of) US$2,000.00
cash in the bank and that is your only excess wealth and possession, and the
loan that you have outstanding is worth US$500.00. Thus your total nett worth will be ($2,000 -
$500) $1,500.00, and this cash has been in your possession for a period of one
year.
In such a situation, because your total nett worth is more
than the prescribed minimum ‘nisaab’ or approximately US$1,000.00, you will be
liable to pay your zakah annually of 2.5% of $1,500.00 or $37.50.
But if the cash you hold in the bank is $1,000.00 and that
is your only excess asset, and the outstanding loan is $500.00….then your total
nett worth will be ($1,000 - $500) $500.00.
Now because your total nett worth is below the prescribed minimum
‘nisaab’, you will not be liable to pay any zakah for the current 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