Page 178 - Taleemul Haq New Edition

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Cash at bank;
Savings account;
Fixed deposits;
Sundry outstanding; (when repaid and if they are equal to Nisaab )
Claims; (acknowledged )
Other savings - household balance; sundry cash.
All these must be added as one amount, and after subtracting the creditors amount
and/or any other liabilities, the balance which is the profit must he added to the capital.
Zakat must then be given on this combined figure.
Zakat should be given on the capital that exists at the end of the lunar year, which
includes the profit, e. g. at the beginning of the year the capital is R2000-00. When the
year ends a profit of R500-00 is shown. Zakat must be given on R2500-00.
If a bad debt is recovered and it is equal to or exceeds the Nisaab, then Zakat on all the
past years must be given.
If one has various different types of merchandise then the total value of all the goods
should be calculated. If it is equal to or exceeds the value of Nisaab then it will be
necessary to give Zakat.
If at the beginning of the year one has the full Nisaab and during and year the amount
decreases and by the end of the year possession of the full Nisaab is regained then it will
be Wajib to give Zakat on this amount.
If one mixes Halal and Haraam merchandise and the amount is equal to or exceeds the
Nisaab at the end of the year then it will be necessary to give Zakat.
It is customary to write the price paid for the merchandise at stock figures. Zakat should
not be calculated on these stock figures. For Zakat purpose current purchase value of the
merchandise should be calculated.
10.If a few persons are partners in a company and if any one share of the partners is equal
to or exceeds Nisaab then it will be necessary for that partner to give Zakat.
11.Stock for Zakat purpose must be calculated according to the Islamic (lunar) year.
12.Zakat is Farz at the ruling price on shares held in a company at the end of every Islamic
year. As machinery, land, fixtures and fittings, furniture, buildings etc. are exempt from
Zakat; one is allowed to subtract these from the total assets. This could be obtained from
the company's annual report, for example if one has shares worth R 100-00 and the
machinery, land etc., are worth 5% of the total assets of the company, then deduct R 5-
00 for machinery, land, fixtures and fittings, furniture and buildings (the exempted Zakat
items) thereafter deduct the liabilities of the company proportionately to the percentage
of shares held, and the Zakat must be calculated on the balance.
13.When Zakat is given on a capital amount once, and thereafter if this same amount
remains with the owner till the following year then Zakat will be due again. Zakat will be
Farz repeatedly after every Islamic year has elapsed.
If Zakat on wealth has not been given at the end of the Islamic year, and all that wealth
either gets lost or stolen, then such wealth is exempted from Zakat. In a case where he
only gives away part of that wealth, then Zakat will be due on the remainder if it is equal
to Nisaab.
NOTE: A person is obliged to pay Zakat on R 10 000, namely the sum of R 250. He sets
aside this amount with a view to paying his Zakat. The sum of R 250 is thereafter lost or