Monday, April 15, 2024
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Zakaah calculation and savings

Fatwaa ID: 475

Question:
A salam o alikum Mufti, I’m trying to save up for a house on cash (to avoid interest) and wondering if this is disliked? (Saving) I also want to know the best way to pay zaqat properly. Is the “ordained” zaqat 2.5 of your lunar year income? I currently take my yearly income (minus taxes) and pay 2.5% on it (month to month). If I were to save up 100k by next year, will I have to pay another 2.5% on this? JazakAllah

Answer:
In the Name of Allaah, the Most Gracious, the Most Merciful.
As-salaamu ‘alaykum wa-rahmatullaahi wa-barakaatuh.

  1. It is permissible to save up to purchase a house. There is no reprehension in that.
  2. Zakaah is not solely on your income. It is also not paid month to month. Your savings are all subject to zakaah as well as all your zakaatable assets such as gold, silver, cash, savings, bank balance, spare change, cash at hand, investments, crypto, etc.

On your zakaah date every year, you will add up all your zakaatable assets, deduct your debts and immediate expenses- if any, and then pay 2.5% on the remainder. This will be the case every year even if you have paid zakaah on it the previous year.

Your zakaah date is that date in which you first owned the nisaab amount after becoming baaligh. This date remains your annual zakaah date unless you reach flat zero. This date cannot be changed, though you may pay in advance and then reassess your wealth on your zakaah date. If you do not remember your exact zakaah date, then you should apply your best discretion and choose a possible date and stick to that moving forward.

And Allaah Ta’aala knows best.
Mufti Muajul I. Chowdhury
Darul Iftaa New York
https://askthemufti.us/

وصل اللهم وسلم وبارك على سيدنا محمد وعلى ءاله وصحبه أجمعين

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