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

I am a bit confused with the way you have shown how to calculate the zakah. basically your answer for almost all the questions on zakah started with the statement ``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.``

Now as per the above statement zakah has to be paid only on the excess wealth (i.e, wealth excluding the prescribed `nisaab` of 7.5 tolas of gold). but in the example calculations you have shown, you did not exempt this value of 7.5 tolas of gold. This contradicts your statement. please refer to your answer for question No 8448 on zakah.

I would be greatful if you can provide me with a suitable answer for the same and also can you please provide me with some references from THE QURAN / SAHI HADITH regarding the calculations for zakah.

Jazakallah.

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Answer:

Calculation for zakah

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: Now as per the above statement zakah has to be paid only on the excess wealth (i.e, wealth excluding the prescribed `nisaab` of 7.5 tolas of gold). but in the example calculations you have shown, you did not exempt this value of 7.5 tolas of gold. This contradicts your statement.

Respected brother, there seems to be a misunderstanding what exactly constitutes ‘excess wealth’.

When we state ‘excess wealth’ it definitely does not mean one’s wealth less the ‘nisaab’; but rather ‘excess wealth’ means all of one’s assets except the assets upon which no ‘zakah’ is due.

1. the value of the house/s one owns and actually lives in (no zakah due on this house)
2. the value of the car/vehicle one uses on a regular basis (no zakah due on this vehicle)
3. the value of the furniture and fixtures one uses on a regular basis (no zakah on these fixtures)

For example, if the total ‘zakatable’ assets of one is $10,000.00; then one is liable to pay annual ‘zakah’ on the full $10,000.00 at the rate of 2.50%...ie. $250.00.

If one’s excess assets is $10,000.00, one is not to deduct the ‘nisaab’ amount (say $2,100.00) and pay ‘zakah’ only on $7,900.00! That would be an error. As long as one’s ‘zakatable’ assets are valued more than the ‘nisaab’, one is liable to pay ‘zakah’ on the total value of their ‘zakatable’ assets (ie. on $10,000.00).

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