Q1) When calculating my Zakat, what figures should I include to calculate my rental income? Is it the monthly rent over the twelve months or do I deduct any expenses e.g. my monthly mortgage and use this figure multiplied by 12?
You only pay on net rental income, not gross.
So whatever is left over from your rental income on your Zakat date after any expenses including mortgages etc. will join the rest of your cash balance and will be Zakatable at 2.5%.
Q2) I am working out my Zakat calculations for this year and I am due to pay on 15th Ramadan. I have made intention for Hajj, I have booked the package however I have only paid the deposit the remaining balance is due before the end of August. My query is that I have the amount too pay for the package now, but I am keeping it in my account until I have to pay. Can I deduct the total amount of the Hajj trip from my Zakat calculations or do I need to pay Zakat on this amount because it is in my possession until the end of August?
Yes you can deduct the outstanding amount from your cash balance before you calculate your Zakat since it is a liability that you now owe and you have presumably signed all the paperwork in relation to going for Hajj.
Q3) I would like to know is there Zakat on child benefit?
On your Zakat anniversary, any money that you have with you should be included in your cash balance for Zakat purposes, irrespective of whether it came from salary, benefits, rental income etc.
Q4) My query is regarding money which I put towards a committee which I put in every 2 years. I wanted to know because I get my committee last. Is Zakat payable even though I don’t have the money?
Zakat is only due on money that you have put into a committee if you can withdraw from the committee at any time and reclaim your contributions instantly or if you know for sure that you are about to receive a certain portion of money from the committee within the next lunar year.
Q5) I have a question regarding my mother’s Zakat. My mum receives child tax credits and child benefit and also has some savings that are not in her possession at the moment but she will be receiving them later on this year. She also has some gold too. I just wanted to know would I need to calculate her Zakat in the same way I have done mine?
For your mother, yes you should do it in exactly the same way as your calculation.
Q6) How will salary earners pay Zakat?
When it comes to cash, Zakat is simply paid on the residual cash left over on one’s Zakat anniversary. So it is irrelevant whether one earns money from salary, investments, benefits, gifts etc. One should simply give Zakat on their nisab anniversary date based on the Islamic calendar and then pay Zakat on whatever cash they have on the day, plus anything else that qualifies for Zakat.
Q7) I would like to know if there is Zakat on child benefit.
On your Zakat anniversary, any money that you have with you should be included in your cash balance for Zakat purposes, irrespective of whether it came from salary, benefits, rental income etc.
Q8) I was burgled in October 2013 and all my gold was stolen. A couple of months later the insurance paid us for our loss so although I no longer have any gold do I still to pay Zakat on the money that the insurance company gave us for the gold.
Yes, you would pay money on the insurance money you received. For Zakat purposes, the source of the money is not important (as long as it is halal of course). The fact that you now have cash and cash is subject to Zakat is the key point.
Q9) Why is Zakat is due on paper money?
At the time of the Prophet Muhammad (peace be upon him), Zakat was due on gold dinars and silver dirhams. Now that we use paper money, Zakat is due on the cash that forms our wealth – not solely on the exchange of silver and gold.
Approved by Mufti Amjad 8th August 2023.
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