Zakah Calculations.
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:
Assalamualiakum,
Jazakallah
for the reply, By Allah's grace & your support i understood how to
calculate zakat, one more question on Zakat,
Lets
say i have my own house which is been given for rent due to Less dimension
of house im living in a different house taken to Rent, in this case how
can one calculate Zakat..
If one
has a vehicle used for Commercial purpose then how can we calculate
Zakat??
Waiting
for your replies eagerly..
Thanks..
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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.
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 full 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:
- the
value of the house/s one owns and actually lives in (no zakah)
- the
value of the car/vehicle one uses on a regular basis (no zakah)
- the
value of the furniture and fixtures one uses on a regular basis (no zakah)
Your
Question: Lets say i have my own house which is been given for rent due
to Less dimension of house im living in a different house taken to
Rent, in this case how can one calculate Zakat..
If you own a house and live in it yourself, regardless of
the value of the house, you are not liable to pay any zakah on this house….for
the house one lives in oneself is exempt from zakah in Shariah.
If you own a house, but do not use or live in it
yourself…..regardless of whether you chose to leave this house empty or give it
for rent to another, this house will be considered as your excess asset and you
would be liable to pay zakah on the fair market value of the house at the rate
of 2.50%.
The rent you pay to live in a rented house and the rent
you receive from the tenant you rented your house to is immaterial when
determining zakah.
Assuming that market value of your house which you have
given on rent to another is worth 100,000.00 today; you would be liable to pay
2.50% or 2,500.00 as zakah for this house for the year.
Your
Question: If one has a vehicle used for Commercial purpose then how
can we calculate Zakat??
If the vehicle is used for your and your family’s needs,
there is no zakah on this vehicle….as the vehicle one uses for one’s needs is
exempt from zakah in Shariah.
But if you are employing the vehicle for commercial
purposes, then it would be considered as an asset and you would be liable to
pay 2.50% zakah on the fair market value of the vehicle.
Lets assume that the cost price of the vehicle is
20,000.00; and the fair market value of this vehicle if you sold it today would
be 10,000.00….you would thus be liable to pay 2.50% of 10,000.00 or 250.00 as
zakah for the 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
Wister