Zakah Calculation

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Question:

Assalam o Alikum,
My question is related to zakat. If I have some amount in my bank. It’s a sort of saving which i have saved across a year. E.g. if I have saved 12k in 12 months.Do I need to pay zakat.If yes then is it 2.5% of 12k? Hanafi

Answer:

Wa alaykum salam.
The first thing to do for every Muslim is to determine when was the first time in their lives after becoming baligh that they possessed the nisaab (threshold) which makes zakaat obligatory on them.
Example Zaid becomes baligh at the age of fifteen in 2020 and also owns $500 on the first of Ramadan and the nisaab is equivalent to $460 then Zaid is considered as sahib e nisaab.
His Zakaat will be due from that date every first day of Ramadan.
So when the next Ramadan comes Zaid will look to see if he possesses the nisaab or not.
The nisaab is the equivalent value of 612.35 grams of silver which could fluctuate every year.
Lets say the nisaab for the following year on the first of Ramadan is equivalent to $450 and Zaid after subtracting his debts and whatever amount he was required to pay for his basic needs that was due upon him prior to the first of Ramadan ie outstanding bills, rent etc and then afterwards Zaid still has a surplas of $490 then Zakaat will be due on him and he will have to pay 2.5% of $490.
Even if he possessed the complete nisaab for about four to six months, thereafter this amount decreased to less than the nisaab and after about three months he acquired some other wealth and he once again possesses the complete nisaab, even in such a case Zakah will be wajib on him. In other words, if a person possesses the nisaab at the beginning and at the end of the year, Zakah will be wajib on him. So he will only consider what he possesses on the first of Ramadan this year and what he possesses on the first of Ramadan next year. By the nisaab decreasing during the course of the year, one is not absolved of giving one’s Zakah.
Many people believe for example that if they have just received a lump sum of $10,000 one week ago then they will not have to pay zakaat on that $10,000 until one year has expired from the time they received it. This is totally incorrect.
The correct method is to determine what day their zakaat is due and pay 2.5% of all their wealth on that day.
So the answer to your question is yes you will pay 2.5% of not only that 12k but you will also add to it your other wealth on which zakaat is due.
Please take note that
only the following categories of wealth are zakātable:
1) Gold and silver
2) Cash
3) Merchandise (for trade)
4) Agricultural products
5) Animals and livestock
When one does not know or remember when was the first time they became sahib e nisaab then they must fix a date and that will be the day that they pay zakaat every year.
Answered by Shaykh Mohammed Shakeeb

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