Annual Zakat On Savings In Addition To Zakat On Production?
All personal items, regardless of how sparingly they’re used, are exempt from zakat. Zakat on production/earning is separate from zakat on savings/assets . They’re each calculated separately without one having any bearing on the other. In case of a salaried individual, 10% zakat on earnings becomes due as soon as you receive the paycheck as long as you’re above the production nisab . One may defer it and pay it once a year in lump sum. Zakat on savings/assets is due once a year on a pre-determined date . The date can be specified by the state, but if not one can pick an arbitrary date of their liking. Generally people pick a day in Ramadan. On that day, if you’re above savings/asset nisab , you sum up the total current value of all of your assets that are not in personal, subtract the amount of nisab, and pay zakat at the rate of 2.5% on the total . It doesn’t matter whether you have paid zakat on those assets previously or not. If you get an asset the night before your pre-determined date, it will be subjected to zakat the next day. Similarly, if you lose and asset the night before your pre-determined date, there’s no zakat on it even if you held it for the entire previous year. You may enter appropriate numbers in our Zakat Calculator after reading the description for each box. When you reach the end, it will generate a statement showing you exactly what you owe after any applicable deductions, and what percentage was applied to each category. It’s also a great way to learn the sharia of zakat. View Zakat Calculator