Paying zakat twice

[USResident]

Re: Paying zakat twice

@psyah

Peace USResident

You can actually do one better on the zakat of retirement savings I think. The amount that is required for the year can be deducted up front and zakat given on the remainder.

Eg.

$100,000 calculate that x amount would be required for a year. Say that x amount comes to $1000 x 12. Therefore, $100,000 - $12,000 = $88,000 which is zakatable amount.

$2,200 would then be the zakat amount. At the end of year 1 that makes remainder is:

$100,000 - $14,200 = $85,800

Let’s say that the plan for the next year is to go on travels costing $3500 in addition to the $1000 per month.

So take $85,800 - $3500 - $12,000 = $70,300 = zakatable amount
Therefore zakat = $1757.50

What I am getting at here is that zakat is not paid upfront but after a year. Does that make sense? The nisab is interesting it is quite low to redefine (i.e. to increase the limit) it would make things more difficult on the poor. The vast majority of the world are in poverty and for them the nisab is still a realistic amount. By increasing the nisab that would mean less charity will come from the West to the poorer places. I mean even after being so low the poverty still has not finished.

That would be another way to do it however it involves uncertainty or predictability on your part for throughout the year. Ofcourse everyone would have a different circumstance and differing way of deducting expenses from their capital. I think though we are on the same page in concept.

The nisab is unrealistic and we cannot use the same yardstick for all. Countries have different economies and different poverty lines. All countries differ in the ir living circumstances or subsidized benefits. I dont think we should be using the lowest common denominator here. We have preserved the amount of nisab but not its principle today. The nisab amount centuries ago was enough to buy a modest family a years sustenance. We clearly violate that principle by choosing to keep the nisab amount the same today. And it is unrealistic. Someone who possesses an amount barely over the nisab of today is by all standards a poor person and actually deserving of zakat instead of having to give it. The nisab amount depending on the rate of gold can vary betweeb $700 - $1000 today. Someone with that amount of saving cannot last one month in USA let alone a year. But such a person would end up giving out zakat. Such a person should have to do only Sadaqah not zakat.