I want to know what is meaning NETT EXCESS ASSETS.
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:
Assalam alaikum,
Al hamdulliah, I
have an opportunity to get your valuable e-mail regarding Zakath.
I have a pretty
doubts, pls clarify if possible.
All
Assets (except the house one lives in, vehicle one uses, etc.) minus all loans
= Nett Excess Assets. It is on the market value of these Nett Excess Assets
upon which the annual zakah of 2.5% is due.
I want
to know what is meaning NETT EXCESS ASSETS.
Suppose
I have two shops and getting monthly rent of 4,200 each.
So, I
should be zakath for Rs 8,400 x 12 month = Approx. 1 lack = 2,500 Rs Zakath.
Not
for the value of shops which I purchased long time ago.
Pls
re-confirm.
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Answer:
Zakah calculations
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.
Your
Question: I want to know what is meaning NETT EXCESS ASSETS.
For the purpose of determining ‘zakah’, the ‘Net Excess
Assets’ would be the current market value of all of one’s assets (properties,
jewelry, cash, etc.) except:
- the
value of the house one owns and actually lives in
- the
value of the car/vehicle one uses on a regular basis
- the
value of the furniture and fixtures one uses on a regular basis.
Your
Question: Suppose I have two shops and getting monthly rent of 4,200 each.
So, I
should be zakath for Rs 8,400 x 12 month = Approx. 1 lack = 2,500 Rs Zakath.
Not for
the value of shops which I purchased long time ago.
The monthly rent or revenues one receives from the shops
or business one owns is absolutely irrelevant when determining ‘zakah’.
Lets say the only assets you own are two shops which you
bought a long time ago for US$1,000.00 each and the current market value of
each shop today is US$5,000.00.
Irrespective of how much rent these shop generate, you will be liable to
pay ‘zakah’ on the current market value of your owned properties at the rate of
2.50%.
Thus two shops current value US$5,000 each = US$10,000.00;
thus your annual ‘zakah’ for this year would be 2.50% or US$250.00.
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