Q: Is Zakat due on savings for which Zakat was paid the previous year?
A: Yes, zakat is due on savings for which one has already paid zakat on from the previous year. Zakat is an annual obligation and every year on one’s Zakat anniversary, all the Zakatable assets are included in the calculation.
Example
Lunar Year 1:
Savings:
Cash: £5000
Gold: £4500
Silver: £3700
Total Savings: £ (5000+4500+3700) = £13,200
Zakat @ 2.5%:
2019: £13,200 x 2.5% = £330 Zakat due
Lunar Year 2:
Cash: £6000 (you’ve had an increase in £1000 of cash savings)
Gold: £5000 (you’ve had an increase in £500 worth of gold)
Silver: £4000 (you’ve had an increase in £300 worth of silver)
Total Savings: (£6000 +£5000 + £4000) = £15,000
Zakat @ 2.5%
2020: £15,000 x 2.5% = £375 Zakat due
And Allah knows best.
Reviewed on: 03/09/2024
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