Q: 104 – Title: I have 20,000 US dollars in cash and in checking account and about $ 5,000 worth of jewellery.

Question

My question is about Zakat calculation

I have 20,000 US dollars in cash and  in checking account and about $ 5,000 worth of jewellery.

I have a car loan of around $15,000 (fixed amount) which I have to pay over next 3 years.I got the car 2 months ago.I donot have any other loans.

I have another car on lease and owe about 4,500 on that over next 15 months.

My question is On what items  and how should I calculate my payable zakat in this instance?

Total money in cash & check jewellery

Total money in cash & check - (car loan amount of $ 15,000  amount  owed  on car lease of   $ 4,500)  jewellery

Secondly,before calculating zakat on money in bank and in cash should I subtract the amount of money due for utility bills,
car payments,apartment rent and monthly credit card payments ( for this particular month)? Please advise.

Your answer in a table format would be really helpful and easy to understand,if convenient.

jazakullah khair.

Answer

In the name of Allah, Most Gracious, Most Merciful

Assalaamu `alaykum waRahmatullahi Wabarakatuh

You need to add up all your wealth, which includes money in the bank, cash, jewelry, etc. and subtract all expenses due until the end of your zakatable year.  If this leftover amount is greater than nisab (minimum value in order for zakah to be compulsory), then 2.5% of it will be the zakah.

For example, if the following values are income earned and expenses due by the end of your zakah year, say 1^st of Ramadan, then the zakah will be calculated as such:

You may also find the following link beneficial as it list a sample of zakah calculation: http://www.al-inaam.com/library/zakaat_c.htm.

And Allah knows best

Wassalaamu `alaykum

Ml. Abrar Mirza,
Student Darul Iftaa

Darul Iftaa, Madrassah In'aamiyyah