Zakaah on yearly savings.
I would like to clarify regarding the payment for Zakaah:
If I have a savings of $100 per month for the last tens years and have accumulated $12,000.00 to date and each year I have been paying Zakaah on the accumulated value of the savings in the previous year.
Do I pay this year the 2.5% on the last lunar year ONLY which would be 2.5% of $1,200.00 or do I pay 2.5% on the total accumulated value of $12,000.00? Please advise. Jazakallah
In the Name of Allah, the Most Gracious, the Most Merciful.
Zakaah is due on one’s total savings and items of trade. Any fluctuation in the amount during the year will not be considered. 2.5% Zakaah will be paid on the total amount of savings/zakaatable assets (minus debts) on one’s annual Zakaah date.
One’s annual date for discharging Zakaah should be fixed (according to the lunar, Islamic calendar) and whatever is the total of one’s zakaatable assets on that date, your Zakaah will be paid on that amount.
For more information see http://fatwa-tt.com/zakaah-guide-2021/
And Allah Ta’āla Knows Best
Mufti Arshad Ali
Darul Iftaa, Jaamia Madinatul Uloom (Trinidad)