Re: Zakat minus Expenses
Yes it is a deduction on savings only … but the savings have to be in the account for 1 period (12 months) in order for that deduction to apply.
For example … If 3 months ago I got a huge amount of money coming in (A) to my otherwise static account (S). This month when I am calculating my zakatable amount from which I will take out the zakat … I will be looking at a balance of (A+S) … If I do a calculation on that basis it would be unfair since the A amount has only been in my possession for 3 months.
Additionally, if in the next 3 months I consume an amount (C) which gives me a balance in 3 months time of (A+S-C) and C is larger than A. Say it turns out that (A+S-C) is 80% of the balance I had 3 months ago which was (S) … It therefore means that the A amount will not be in my possession long enough to be deductible for zakat and in fact the amount S would also be too large also and I should be setting my zakatable amount to 80% of S for those months where 1 year in possession was not achieved.
So effectively expenses is being taken in to consideration because we have to calculate zakat on the amount saved for a year, which if it is gradually being eaten away will also mean the amount that is zakatable is to be reduced according to that.