Fatwa ID: 08138

Answered by: Alimah Aisha Qureshi

Question:

Assalam o Alaikum,
I hope this message finds you well. I have a few questions regarding the payment of Zakat, and I would greatly appreciate your guidance:

Zakat on Savings:
Over the past year, I have been saving money, and at present, the total amount saved is £21,000. However, this amount has been saved gradually, with over £1,000 being deposited each month. Since this sum has not been in my possession for a full year, do I need to pay Zakat on the entire £21,000, or do I only need to pay Zakat on the portions that have been in my possession for a full year? If Zakat is due, on what amount should I calculate it?

Zakat on Company Funds:
There is £14,000 in the account of a company I own. The company was registered in September 2023, and it began receiving income in February 2024. The funds are currently in the company account, and as the money is not accessible until tax declarations are made, it has not been cashed out. Do I need to pay Zakat on this amount? If so, how should I calculate the Zakat, considering the funds are not personally accessible yet?

I would greatly appreciate your insight and advice on these matters.

JazakAllah Khair for your time and assistance.

Kind regards,
Umaira

In the name of Allah, the Most Gracious, the Most Merciful

Answer:

The amount you need to pay Zakat for is the amount you held in your possession for a whole year. Anything other than that, you don’t need to pay the Zakat for it.

If the money from the account of the company is used for your possession, then there will be Zakat due on it if a lunar year has passed with it in your possession.

References:

الزكاة واجبة على الحر المسلم البالغ العاقل اذا ملك نصابا ملكا تاما وحال عليه الحول
Al-Lubab fi Sharh al-Kitab, pg. 145, Dār al-Kutub al-‘Ilmiyyah

Only Allah knows best.

Written by: Alimah Aisha Qureshi
Checked and approved by: Mufti Mohammed Tosir Miah
Darul Ifta Birmingham