Has everybody set aside their fair share of Zakaat yet ?
Is it 2.5 % of salary, income or assets ?
If assets, do the retirement funds count, that people don’t have access to until old age ?
What kind of places do people send their Zakaat money to, especially outside of Pakistan, where you can’t really find needy people on the streets.
[Posting this question in the All Views forum as the visitor population here is more diverse.]
Re: Zakaat.
its the 2.5 % of savings, not assets. Your house and car are your assests too, but you dont put zakat on that.
about the retirement funds, as much as scholars believe that its part of zakat, I do not believe that (sorry I am that hard headed). Your retirement fund is not in your active ownership yet - and you dont pay zakat on something that you do not own.
Re: Zakaat.
I thought so. Thanks.
Re: Zakaat.
its the 2.5 % of savings, not assets. Your house and car are your assests too, but you dont put zakat on that.
about the retirement funds, as much as scholars believe that its part of zakat, I do not believe that (sorry I am that hard headed). Your retirement fund is not in your active ownership yet - and you dont pay zakat on something that you do not own.
Peace TLK
When a loan is given to someone and they can't yet pay it back ... You still don't have active ownership but you still have to pay zakat on that ... How is a pension fund different?
A better way to look at pension for zakat purposes is to take it as investment money ... So you only pay zakat on the amount of capital increase that the pension fund has made in that year and not over the whole amount.
Re: Zakaat.
What's the better way paying zakat, all at the same time or it can be paid over the year?
Re: Zakaat.
What's the better way paying zakat, all at the same time or it can be paid over the year?
Better as in easier or better as in better for the beneficiaries ... Please clarify
Re: Zakaat.
. So you only pay zakat on the amount of capital increase that the pension fund has made in that year and not over the whole amount.
Ok that makes sense. But what if I go on loss?
My capital increase gets invested back in my mutual fund, so its still my money invested in business. Is not that exempted from zakat?
Re: Zakaat.
The biggest impact would be whether the total value of the pension/retirement fund is counted or not.
If not, then that reduces the Zakaat amount by a lot as people in the West have a lot of money (hopefully) tied up in their retirement fund.
Re: Zakaat.
The biggest impact would be whether the total value of the pension/retirement fund is counted or not. If not, then that reduces the Zakaat amount by a lot as people in the West have a lot of money (hopefully) tied up in their retirement fund.
I have decent amount of money sitting in my retirement fund. I will only be elgible to receive it when i am at least 59 1/2 years old. Before that, if I want it, i need to take a loan, I can only borrow 50% of what I have, and I have to pay back with interest. I am sure that does not sound like I own that money, does it?
Re: Zakaat.
Ok that makes sense. But what if I go on loss?
My capital increase gets invested back in my mutual fund, so its still my money invested in business. Is not that exempted from zakat?
Yes, but business's are zakatable in different ways ...
The calculation is taken from the year's revenue and not the savings, therefore if you treat it like you are making a business revenue then that applies.
Noting the idea behind zakat is to encourage spending and not saving too much, putting a natural cap based on your earning power. So if you are earning more than is being spent then the idea is to distribute a portion ... Without silly amounts going out from your pension fund ... This would be the middle way of doing it ... Go to various calculation for zakat websites and they say the same thing regarding business too.
Re: Zakaat.
I don't have a pension fund, but inshaAllah the idea is to have a running business before I reach that age ... InshaAllah
Re: Zakaat.
Has everybody set aside their fair share of Zakaat yet ?
I have not. I usually do so in the middle of Ramadan.
Any gains in retirement accounts are not realized income or wealth.
In my view, Paying zakat on any gains for that year is fine as long as then you subtract the costs including fines, higher taxes etc that you would face if you were to take that money out.
Re: Zakaat.
on your savings you need to pay 2.5% of zakat.
if you are business owner, then all the item which is stoked in your inventory is also zakatabale.
Husband is not responsible of the zakah of his wife and vise versa.
things which you actively used entire year like car, home are not zakatable.
if your wife is using her gold/silver jewelery actively, then she is not required to pay zakah, but if she is keeping her gold in locker then she has to has pay zakah, and again you are not responsible of her zakah.
Re: Zakaat.
Husband is not respon**sible of the zakah of his wife and vise versa. ** if your wife is using her gold/silver jewelery actively, then she is not required to pay zakah, but if she is keeping her gold in locker then she has to has pay zakah, and again you are not responsible of her zakah.
Brother what stated above is wrong.
As per MACCA Zakat Authority:
2) The nisab for gold is approximately 87g. Doesn't matter wife is using it on the daily basis or not. Once you have more then 87g of gold (silver 595 g), you are liable to pay zakaat. There is no harm in overpaying the zakat, so if your estimate is a "safe estimate" ( i.e. definitely not less than the value of the gold) then you can use this figure, and you do not need to weigh it exactly.
3) Yes, the zakat on your wife's jewelry is payable by her. If she does not have enough money to pay the zakat, then either she could sell some of the jewelry, or you (husband) could give her enough money to enable her to pay the zakat.
Re: Zakaat.
ok
Re: Zakaat.
its the 2.5 % of savings, not assets. Your house and car are your assests too, but you dont put zakat on that.
about the retirement funds, as much as scholars believe that its part of zakat, I do not believe that (sorry I am that hard headed). Your retirement fund is not in your active ownership yet - and you dont pay zakat on something that you do not own.
**Zakaat on retirement funds :
**If the monthly contribution from his salary towards this fund is deducted at source by the employer without the employee's being given this amount then there is no Zakah on that wealth until the same is received by the employee. This is because in such case the employee has not yet become the owner of that wealth.
However if the employee voluntarily contributes to a retirement fund from his own wealth then he will be liable for Zakah yearly on the contributions he has made plus any profit he has accrued thereby. In this case it is simpler to pay the Zakah each year although he can pay the Zakah for all the preceding years when he in reality receives the money.
Re: Zakaat.
Interesting.
Re: Zakaat.
As for retirement accounts are concerned, I pay zakat on the gains for that year.
Personally I do not see Zakat as a burden so If am doubtful about some account, I just pay the Zakat on it. Even in the end ager wo zakat na bhi hoie tu at-least its a charity...
Re: Zakaat.
If somebody has money saved up for college, it is fully or partially zakaat-able ?