Zakat for accumulated money

19-2-2007 | IslamWeb

Question:

(for example) I have 100 dollars and i pay a zakat of 2.5 dollars after completing a year.The next year i am able to save 197.5 dollars(100+97.5) along with the money for which zakat is already paid ,now should i pay zakat for 100 dollars or for 197.5 dollars?In hanafi fiqh what does they say?

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Answer:

All perfect praise be to Allaah, The Lord of the Worlds. I testify that there is none worthy of worship except Allaah, and that Muhammad is His slave and Messenger. We ask Allaah to exalt his mention as well as that of his family and all his companions.

 We have already issued Fatwa 81977 clarifying the conditions which render paying the Zakat an obligation.

As regards your question, you are obliged to pay the Zakat for all the money which you possess, which is 197.5. This is the view of the Hanafi School of jurisprudence. This is also the best thing to do, as this gives more opportunity for the poor, but this is not an obligation according to the other three Schools of jurisprudence.

According to the remaining three Schools of jurisprudence, the saved amount should be considered as a profit that should be counted starting from the day of possessing it until a whole lunar year elapses on it (to be liable for Zakat).

For more benefit, please refer to Fatwa 82016.

Allaah Knows best.