Fatwa #173715 December 2000Pakistan
How much Zakat should I pay on cash before I was a Muslim? If cash is intended for future use, do I still have to pay Zakat on that cash?
Question
I've embraced Islam and converted in Apr 2000. When I converted, I had $10,000 cash. It's Ramadhan now and I want to pay my Zakat. I now have $20,000 cash. Do I have to pay 2.5% of the full $20,000?, or only 2.5% of the cash I've had for the entire year (or the time I am a Muslim), which is $10,000? If I have saved this money up for a purpose in the future (i.e. my wedding), and I have intention to use the money for this purpose, do I still have to pay Zakat on it ? Is it still concidered unsued cash even though I intend it to be used in the future ? Looking forward to your reply insh'allah.
Answer
In principle, zakat is payable on whatever amount you have in April 2001. If you will be using some money from the $20,000 before April 2001, then there is no zakat on the used amount. If you wish to give your zakat before the end of the year (April 2001), you may do so and you may estimate what amount will be in your possession at that time and give 2.5% of that amount to zakat.
And Allah Ta'ala knows best
Mufti E. Desai
And Allah Ta'ala knows best
Mufti E. Desai