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Question On Zakaat
Assalamoalaikum,
Wanted to clarify zakaat calculation in below scenario.
One person has:
1. A house on mortgage in which he is currently living. Let’s say he still owes 250K to bank.
2. He then decides to invest in a land to build a new home, his plan is that he will build this home to live in and change # 1 home to rent once new home built.
3. New home requires him to invest a deposit let’s say about 35K and it will take about 15 months to finalise land then home. 35K is his savings not loan.
4. Also, the person has let’s say 50K still left in bank meaning he is above Zakaat Nisab on 1st Ramadan when he calculates his Zakaat.
My understand after reading Meezan and understanding from Javaid Sahab’s lectures is below. Please refresh my memory by sharing further:
1. Since no return on investment is yet generated therefore Zakaat cannot be as per return on investment percentages.
2. Since invested 35K is still saved money therefore Zakaat of 2.5% will apply on total savings which will be 35K (deposit for land) + 50K (in bank) i.e., 85K x 2.5%.
JazakAllah
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4 Replies
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Question On Zakaat
updated 1 month, 1 week ago
2 Members
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4
Replies
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The investment in the plot is intended for residential purposes rather than commercial use; therefore, this amount is excluded from the Nisab for Zakat.
Savings held in the bank are subject to Zakat. However, if these savings are earmarked for building a house and will be immediately utilized for this purpose, they are exempt from Zakat. Nonetheless, if he is able to pay Zakat, it is preferable to do so.
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JazakAllah for explaining.
Just want to clarify the closing of your answer.
So what i understood even if person is able to pay Zakaat. He will only pay Zakaat on amount in bank and the deposit for future residential purpose is excluded regardless. Is that correct?
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Right
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JazakAllah brother.
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