Aoa, I just watched Dr. Mufti Abdur Rehman’s video on zakat. I have been working since 2014 and have paid zakat on gold only as I didnt know zakat was due on other items as well. Now i need help to identify the correct zakat to pay. Can you please answer my below enquiries.
1. I have 408 gms of Gold given to me by my parents and husband on my wedding, sitting in bank. How much will be zakat on it, if any? And do we use the rate on which the gold was purchased to calculate the zakat or will it be the market rate of gold on the date on nisab’s anniversary? I saw another video where they said no Zakat is due on gold gifted to a woman onnher wedding as wives of Prophet (S.A.W) didnt pay zakat on them.
2. I also have $40K cash sitting in my bank out of which $15K belong to the amount i am saving for a future surgery i have to get. Do i pay zakat on that $15K as well?
3. I have recently built a house which is on rent. Its been 5 months it has been on rent. Can you advise if I will pay zakat on rental income? Again it wont matter if the money has started coming to me only 5 months ago but if its in the bank on the anniversary day, i pay zakat on it? Right? And No zakat is payable on the investment property amount?
4. I also have loaned money to some friends as well. Do I add that amount to my cash sitting in bank on every anniversary date before i calculate my zakat?
5. Finally, if i havent paid the correct amount of zakat in the past, do i have to catch up on that amount? Or u seek forgiveness and start paying it correctly in future?
Please let me know, i will be very grateful.
1. You will pay zakat based on what the market value of the gold was on your zakat date. You will then pay 2.5% of that value as zakat.
2. You will have to pay zakat on the 15K also.
3. If the house is built to be rented out then zakat will only be payable on rent which is in your possession on your zakat date.
4. Yes, money given as a loan is zakatable. You should add that to your cash balance and pay zakat accordingly.
5. If you have missed zakat payments in the past, then you must re-calculate the correct amount and pay accordingly as the zakat is still outstanding.
Ifta Research Fellow
Checked & Approved by:
Mufti Abdul Rahman Mangera
Mufti Zubair Patel