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:

As salaam walakum.

1) I owned a proprety but still it`s installement is due is zakah is applicable on that land?

remaining installemnt is not huge amount now i can pay it in one shot.

2) My brother is earning but it`s not much and his wife has gold on which zakat is applicable is`t ok if i can pay for it ?

3) Can i deduct the tax which is payed 2 months back? 

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Answer:

Zakah calculations

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Your Question: ….i owned a proprety but still it`s installement is due is zakah is applicable on that land? remaining installemnt is not huge amount now i can pay it in one shot.

If you yourself are staying in the property, there is no zakah on the property….as the house one stays in is exempt from zakah in Shariah.

But if you purchased the property for commercial reasons, then indeed zakah would be due on that property, regardless of whether it is in your possession or not, and regardless of whether you have fully paid up for the property or not. You will be liable to pay the zakah for your share of the value of the property.

Lets say the property you have purchase was valued at 100,000.00 and you have to date paid up 85% of the value or 85,000.00.

And lets saythe apartment today is worth 120,000.00.

Your share of the asset is the 85,000.00 which you have paid up, plus the 20,000.00 increase in the value of your apartment during the calendar year.

Thus, according to the above quoted assumptions, you would be liable to pay 2.50% of 85,000+20,000.00 = 105,000.00 or 2,625.00 as your annual zakah.

Your Question: …my brother is earning but it`s not much and his wife has gold on which zakat is applicable is`t ok if i can pay for it ?

What is of paramount importance is that ‘zakah’ is paid on the excess wealth of an individual; who actually fulfills that zakah obligation is absolutely irrelevant.

If your brother’s wife has gold, and she or your brother are unable to pay the zakah for her gold, you are well within your rights to fulfill the zakah for her gold. It will not only absolve her from paying zakah, but you will have a huge reward for helping them fulfill their obligation unto their Lord.

Your Question: ….can i deduct the tax which is payed 2 months back? 

The tax one pays to the government or the land one lives in is obviously deductable from zakah calculations.

Lets say you have the following excess assets before tax:

Property: 100,000.00

Gold: 50,000.00

Cash: 40,000.00

Tax due from you this year is say 25,000.00.

Thus you will be liable to your annual zakah for the year as follows:

100,000+50,000+40,000 = 190,000 less 25,000 (tax) = 165,000.00

You would have to pay 2.50% zakah on 165,000.00 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