Zakat Question

[Sadiyah]

Re: Zakat Question

Define credit line.

To the best of my knowledge, it's an amount that the bank has agreed to grant it to you when you're in need of it (eg. to pay suppliers or for other purchases).

[yourfriend]

Re: Zakat Question

yes
so whether u use it or not .. its your cash on hand kinda thingy

[Sadiyah]

Re: Zakat Question

Go through some of the above answers and see if it fits under any category where zakah has to be paid over it.

[Captain1]

Re: Zakat Question

@yourfriend

emm.. zakat is due on credit lines too??

no, zakat is only for what you OWN, the cash which is YOURS, not what is “available”… zakat is due on “assets minus loans”, so the amount you will borrow from credit cards will be a “loan”.

[fair_balance]

Re: Zakat Question

Very good links Sadiyah.. Thanks.

[fair_balance]

Re: Zakat Question

@Faisal

^ You have to follow Islamic calendar. You can not take rolling 12 months at any given time. Ofcourse, you can personally give as much zakat as you want to, but that will be incorrect advice to anyone asking about this. In your example, the basic assumption is that month 1 is Ramzaan. You calculate the unused wealth from Ramzaan 1 to Ramzaan 1. Not for any random months. Then again, if you want to give out more, thats fine.

Faisal Bhai,
I am afraid to say but Armughal is totally right. Please check this website All About Zakat - Hidaya Foundation
On this website they have explained with a graph where one has fluctuating saving over a period of time. It appears that if you are above nisab though out the year then Zakath is mandatory for the $$ that you have in the bank currently

So my understanding is that whatever time you pick for Ramadhan for your annual zakath calculation whatever wealth you are in posession of is Zakatable. Same law applies to 401K. Assume that you have to withdraw total money today. What will you get in that case? Tha is the amount you should pay Zakath on.

[Afro-Sheen]

Re: Zakat Question

OK someone help me. What if you have 2 bank account, one is checking and the other savings. Now I am constantly paying off bills/debt via my chicken account, so it is rolling. Like I deposit into it, but by the end of each month its recycled as I have continuous bills. Now the savings account I am confused about. Do i only count what i have added at that point in time? Because anything I added after that is less than a year old? do i look at total balance in my savings account? im totally lost due to so many opinions.

[AnGeL_EyEs]

Re: Zakat Question

i need clarification.....do we pay zakat on money that is being used? yes or no?

do we pay zakat on stocks and savings?

[Captain1]

Re: Zakat Question

afro-sheen... you have to take into account ALL of your assets when calculating zakat, don't do that separately (i.e. no zakat due on Checking out but need to pay zakat on Savings account... that is incorrect).

[Captain1]

Re: Zakat Question

@AnGeL EyEs

i need clarification.....do we pay zakat on money that is being used? yes or no?

What is that?

[quote]
do we pay zakat on stocks and savings?
[/quote]
Zakat is on your savings, cash, something you can sell and get cash for (but not on properties in use i.e. car, house).

[Afro-Sheen]

Re: Zakat Question

@Captain1

afro-sheen... you have to take into account ALL of your assets when calculating zakat, don't do that separately (i.e. no zakat due on Checking out but need to pay zakat on Savings account... that is incorrect).

That's what I am so confused about. I thought Zakat is on money that is your savings, and normal use and stays for more than a year. But I was under impression that checking is constantly used to pay weekly and monthly bills, plus for food/lunch/gas/expenses on a weekly basis using ATM/debit. Does that get zakat still?

[AnGeL_EyEs]

Re: Zakat Question

@Captain1

What is that?

i mean.....do you have to pay zakat on money that just sits there (ie savings)? what about checking...i thought we didnt have to pay zakat on checking since we are use that money on bills etc.

[AnGeL_EyEs]

Re: Zakat Question

@Afro-Sheen

That's what I am so confused about. I thought Zakat is on money that is your savings, and normal use and stays for more than a year. But I was under impression that checking is constantly used to pay weekly and monthly bills, plus for food/lunch/gas/expenses on a weekly basis using ATM/debit. Does that get zakat still?

yea that is what i thought.....in fact that is what i was told.

[Rush]

Re: Zakat Question

it's confusing, the good thing is I never had any savings;so no need to learn and calculate zakat but i like the idea of paying zakat so I give away 5% from my wages every month: 2.5 for myself in case I had to pay and i did not know, 2.5% for my parents just incase if they forgot to pay in their life time at any stage.

[Captain1]

Re: Zakat Question

@Afro-Sheen

That's what I am so confused about. I thought Zakat is on money that is your savings, and normal use and stays for more than a year. But I was under impression that checking is constantly used to pay weekly and monthly bills, plus for food/lunch/gas/expenses on a weekly basis using ATM/debit. Does that get zakat still?

Whether you put aside money for your upcoming tuition fees, upcoming "credit card bill", it doesn't matter. You have to add ALL your assets (see above) and substract liabilities (credit card, loan etc.) and get a "net-sum". The zakat is payable on the net-sum.

[Captain1]

Re: Zakat Question

@AnGeL EyEs

i mean.....do you have to pay zakat on money that just sits there (ie savings)? what about checking...i thought we didnt have to pay zakat on checking since we are use that money on bills etc.

Read reply above. There is no distinction of "sitting" cash and "cash-in-use", you have to look at your net-sum asset of throughout year and find out the minimum balance you had.... thats the amount you possessed for one year and is due zakat on.

[Captain1]

Re: Zakat Question

@Rush

it's confusing, the good thing is I never had any savings;so no need to learn and calculate zakat but i like the idea of paying zakat so I give away 5% from my wages** every month**: 2.5 for myself in case I had to pay and i did not know, 2.5% for my parents just incase if they forgot to pay in their life time at any stage.

bhai mian, zakat is applicable on your "yearly" savings, giving it out every month is not the way... you can giveout sadaqa every month but you still are due zakat for whatever cash/savings/stocks you didn't touch/spend throughout the year.

[Rush]

Re: Zakat Question

dear captain1. I have no savings in terms of cash/savings/stocks/etc whatsoever. the only thing I have is my laptop :love: and ipod which I use for memorizing quran. both are few months old. I give 5% with intention of zakat as i read some where that zakat paid less even by a cent will go to hell. I have plenty of SINS and it does not look nice and personally I won’t like it togo to hell for couple of cents.