Re: Zakat minus Expenses
BarakAllahuFiq Sister redvelvet
Okay …
Let’s say period x is the zakat period … So zakat period (x-1) is the year before and (x+1) is the zakat period for the following year … To calculate the zakatable amount in period x, you need to first make sure that the saving value is above nisab. You can only calculate your zakat for period (x-1) at the end of period x … Likewise, you can only calculate your zakat for period x at the end of period (x+1) … Any method that provides you a zakat for the period you are in, will only be an estimation and adjustments would be required, by the end of the next period.
The above is based on the requirement that zakat is calculated on savings for a lunar year.
Your funds profile will be a diminishing one … So let’s assume the balance at the end of period (x-1) was z amount and that amount is the lowest that has been in that period, but 6 months into period x, your balance goes down to (z-100) immediately in month 6 prior to which it remained on z. This fact has now affected months 7 through to 12 at least for the previous period … Because although the end of period (x-1) had z balance, the balance in months 7 onwards would not be equal to z for a whole year. Transfer the same concept to zakat period x and we have a problem … And that is to truly know the zakat of period x you have to wait until the end of period (x+1) … So in reality we should never be trying to calculate the zakat of the year that has just gone by, but rather we should be calculating the zakat of the previous year.
In practice you have probably been paying estimates each year thinking them to be actual amounts … So if you can recall the zakat paid last year determine the amount you should have given and that will be less. Then do the same estimate for this period and subtract the amount of overpayment from the previous period. So now your zakat for period (x-1) is correct, but your amount for period x can only be finalised at the end of period (x+1) …
I hope that all makes sense. We should not really subtract likely expenses because that has a different danger. Final balance estimations are over-estimates so that is fine, but to pre-empt expenses can lead to underpayments which is not fine.