Zakat Calculation Resulting In Double Obligation
Faisal, that is why I asked Fahad to ask the question again with the mention of specific intent for savings. By the way, it will be extremely difficult for someone to save for retirement, to buy a house, or save for wedding or children’s education if in all above cases the person is paying taxes on his salary first, then pay Zakat on savings and on top of it loose 5 to 10 or more percent due to inflation. At least inflation should be offset to Zakat amount. Is there any Ijtihad on that? As inflation is due to government spending tax money in advance by overspending. It is like taking tax by force in advance.
In principle, items of personal use are exempt from zakat and this may extend to genuine savings made for personal needs i.e. Gold saved for daughter’s wedding, plot bought or savings made to construct a house for personal use only etc. A Muslim has to decide for himself/herself in all honesty knowing that he/she will be held answerable to God that which of his/her savings are for personal use and which have been kept as wealth. Please see the following for details : Discussion 48309 • Reply 48317 Discussion 46493 • Reply 46494