Zakah calculation : [1]

Fatawa Question

Salams 1-Before three years, I used to calculate my Zakat account based on what was the cash in hand upon completion of one full year (which used to calculate every Ramadan). 2-Since there are different opinions related to Zakat calculation, and in order to have a better transparency in my financials, I thought to follow based on the following aspects : Since the last two years, I calculated my Zakat based on what I have in hand after my basic expenses. Like, my income is SR 8000 per month, deducting SR 3000 as expenses. Then the net cash in hand SR 5000 x 12 = SR 60,000. Note : the money actually not in hand always, however I calculated in that way. Also, I added my incentive which is almost SR 10,000. So, the total net is SR 70,000 per year. I paid Zakat @ 2.5 % SR 1750 (its value equivalent in Indian Rupees). Please note that part of the above money I have invested in 2-3 small scale projects which contribute a nominal profit from one and no profit from the other two. I will pay Zakat @ 2.5 % from the nominal profit I get from the profitable project mentioned above. II 1-I sold ornaments of my wife (ornaments worth SR 16,000) and spent that money for something including some of the investments I made. And I have been doing so. I have promised my wife that I will pay to her a nominal money every month as a profit share to her in view of the fact that I spent her money. Also, I have promised her that when I reach into a good situation, I will buy a land or anything that worth the money I took from the sale of ornaments. Now my question is : 1- Since I have liability for SR 16,000 related to the value of ornaments sold, can I offset it from my net income mentioned above SR 70,000 and calculate Zakat accordinlgy. 2-Similarly I have rent income, for which I am paying Zakat. But there is cushin money (security deposit) from the tenants and I used that money in my nvestments or I spent it fully, no money is in hand from that money. Since I have liability for those security money, can I offset it from my net income and calculate my Zakat accordingly provided that the security money is subject to return back to the tenant whenever they vacate the shop room. Appreciating your valuable reply. Jazakallah Khair

Fatwa

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Publication Date

2007-09-23

Main Subjects

Economics & Business Administration
Islamic Studies

No. of Pages

3

Data Type

Fatawa

Language

English

Record ID

BIM-785900

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