Money, whether in the form of paper, coins, or otherwise, is equivalent to gold and silver as a means of purchasing power. The zakat nisab for money savings is based on the current value of the nisab for 20 mithqal (85 grams) of gold or 595 grams of silver.
The Prophet Muhammad ﷺ said:
“If you possess 200 dirhams and a full lunar year (haul) has passed, you are obliged to pay 5 dirhams in zakat. Zakat is not obligatory on gold unless you have 20 dinars (one of the currencies used in Arabia at that time). If you have 20 dinars and a full haul has passed, the zakat due is half a dinar. The same proportion applies if the value increases, and zakat is not required on any wealth except after a full year has passed.”
(Hadith narrated by Abu Dawud)
When a fixed savings account has completed a full year and the total amount exceeds the nisab threshold (equivalent to 85 grams of gold), zakat of 2.5% of the total savings must be paid.
Zakat on regular savings is calculated based on the balance at the end of the haul (one lunar year).
If a savings amount has completed one lunar year and the balance at the end of the haul (after deducting any interest accrued during that period) exceeds the nisab, the individual is obliged to pay zakat on that savings.
If a person has several savings accounts, the balances at the end of the haul from all accounts must be combined to calculate zakat, even if the balance of each individual account does not reach the nisab when calculated separately.
There is no clear nas (textual evidence) regarding zakat on debt, and it has become a point of difference (ikhtilaf) among the fuqaha (jurists). The differing opinions of the fuqaha are based on whether zakat needs to be paid on money that is expected to be received or not. Therefore, the Majma Fiqh Islami OIC has decided:
Debts that can be deducted from zakatable assets are debts that must be paid immediately. Debts whose payment is deferred do not reduce zakat on the assets owned during the current period. Therefore, debts that must be paid in a future period using future income or assets cannot be deducted.
| Zakat is Obligatory | Zakat is Not Obligatory |
|---|---|
|
Debts that are expected with certainty to be recovered; (دين مرجو الأداء) |
Debts that are not expected to be recovered; (دين غير مرجو أخذه ) |
| Can Be Deducted From Zakatable Assets | Cannot Be Deducted From Zakatable Assets |
|---|---|
|
Already due / needs to be paid immediately for the relevant haul. |
Only needs to be paid in a deferred / future haul. |
Zakat Selangor Hotline : 1-300-88-4343
Email : maklumbalasaduan@zakatselangor.com.my
