Zakat On Savings

[Umer]

That’s correct. We are required to pay production zakat on our earnings and production. Additionally, we’re also required to pay 2.5% on savings or assets once a year. There’s nothing cruel about it, in fact it’s very just. You can think of it as the total zakat due being split into two separate categories. The latter category only becomes due if the person has any savings or assets.

Also to clarify, the savings zakat becomes due once a year on a pre-determined date. On that particular date, whatever assets/savings you have which aren’t in personal use become subjected to zakat as long as you meet the nisab. You don’t have to have those assets in possession for a year.

For more details about zakat, please see:

Discussion 46733

[Muhammad]

No, Zaqat can not be taken twice on an item. I fully disagree with your reply.

If we take salary as production than every single person would be eligible to pay Zaqat which is again not real. A person has not Nisaab but paying production zaqat for his 10,000 rs salary. It is really a joke to him.

Totally disagree with you.

Thanks

[Umer]

You can disagree with me anytime you like. I have only shared with you our understanding on this matter as it has been explained by Ghamidi sahab.

If a person earning Rs. 10,000 meets the nisab then yes his earnings will be subjected to zakat.

Ghamidi sahab has explained zakat in a lot of detail. If you want please checkout the link I shared with you above.

[Muhammad]

Thank you very much sir.