Title: Zakat Calculations

Question: I have questions regarding zakah calculations: Question 1: From the annual calculations of zakah, do we need to deduct the following amount as deductible liabilities from my assets in order to find the net value on which zakah (2.5%) will be applicable? The liabilities as follows: Car Lease Payment (next 12 months), Apartment Rent Charges (12 months), Children School Fee (12 months), Tax Payable to Govt. (Annual ), Utilities Bills (12 Months), Other Liabilities (Purchasing food commodities for oneself and his family - next 12 months). Question 2: I have booked the property for investment in 2002 and paid its value through installments to next 10 years. In 2012, I got possession of this property. So zakah would be applicable on market value right after 2002 when I booked that property or starting from 2012 (when i got the actual possessions of that property). Please assist me.

Answer ID: 156806Posted on: Sep 1, 2020

Bismillah hir-Rahman nir-Rahim !

(Fatwa: 287/279/SD=4/1439)

(1) After completing one year on the nisab of zakah it is mandatory to pay 2.5% zakah after calculating all the zakatable items. At the time of completing the year the amount shall not be deducted for future needs. Hence amount equal to the car lease, rent of flat, school fee of children, bills related to other facilities and the eatables for oneself and for family shall not be deducted from the zakah calculation. However, as much amount has been spent in the need before completing the year or the debt which is due whether it is in form of due school fees or the amount of food materials bought on credit or due bills they will be deducted from the zakah amount.

(2) If you have not bought the said property with the intention of selling then no zakah will be wajib on it.