Zakat on money that is invested in trade

Asalamu Alaykum.
I have a certain amount of money. The whole amount is above the nisaab.
However, part of it is in the trade business. In calculating the current year's Zakat, do I have to include the amount that's not back yet from the trade; or should I only calculate the Zakat upon what I currently have with me at this point of time.
Jazakum Allahu khayran

Praise be to Allaah.

If one year has passed since you have possessed this wealth, you should pay zakaat on it, whether it is on hand or is invested in trade. If you have earned some profit on it, the zakat for that is due when the zakat on the original amount is due. And Allaah knows best.

Is there any zakaah on their house, shops and jewellery?

I want exact figure of zakat to be paid by us.our family consists of 3 brothers married having children and parents,living together.
1- We have big house in which we r residing,
2-we have second house of indian rs.
3 million value.3-we one business with capital of 2.5 million
4-we have shop of 4 million and we have some different assets of 1 million rs. having jeweellery worth one million rs.how much zakat we have to pay.

Praise be to Allaah.

Firstly: 

The Muslim does not have to pay zakaah on the house in which he lives – even if there is more than one house – or on the car which he has for his own use – no matter how valuable it may be. 

Shaykh Ibn Baaz (may Allaah have mercy on him) said:  

There is no zakaah on houses if they are for living in… but with regard to land, houses, stores and the like that are prepared for sale, zakaah is due on these according to their value each year when a full year has passed, regardless of whether their value has risen or fallen, if the owner has firmly resolved to sell them. 

Majmoo’ Fataawa al-Shaykh Ibn Baaz, 14/173 

Secondly: 

There is no zakaah on shops and property used for business themselves; there is no zakaah on land or buildings or on the furnishings and vessels in the store, no matter how much they are worth, unless these things have been prepared for sale, in which case zakaah is due on them. This is what the scholars call zakaah on trade goods. 

Shaykh Ibn Baaz (may Allaah have mercy on him) said: 

The basic principle is that everything that is prepared for sale is subject to zakaah, and things that are used in the shop are not subject to zakaah. 

Majmoo’ Fataawa wa Maqaalaat Mutanawwi’ah li’l-Shaykh Ibn Baaz, 14/183 

The way in which the zakaah is worked out is: 

The value of the goods that are in the store at the end of the year is worked out, then the zakaah is paid on them at a rate of one-quarter of one-tenth, i.e., 2.5 % of the value. See question no. 26236. 

The scholars of the Standing Committee said: 

Trade goods are those which have been prepared for sale and purchase of all kinds or property. Zakaah must be paid on them if their value reaches the nisaab of gold and silver, and the owner took possession of them with the intention of trading them. Their value in gold and silver should be estimated at the end of the year, in favour of the poor and needy. The basic principle concerning that is the verse in which Allaah says (interpretation of the meaning): 

“O you who believe! Spend of the good things which you have (legally) earned”
[al-Baqarah 2:267] 

i.e., what you have earned by trade; this was the view of Mujaahid and others. Al-Baydaawi and others said: Spend of the good things which you have earned, i.e., the obligatory zakaah. 

And Allaah says (interpretation of the meaning): 

“And those in whose wealth there is a recognised right”

[al-Ma’aarij 70:24] 

Trade comes under the general meaning of wealth, so there is a due which the Prophet (peace and blessings of Allaah be upon him) defined as being one-quarter of one-tenth. The wealth of trade is the most important kind of wealth, so it is more apt that it be included in the meaning of this aayah than any other kind of wealth. It was narrated that Samurah ibn Jundub (may Allaah be pleased with him) said: “The Messenger of Allaah (peace and blessings of Allaah be upon him) used to command us to pay zakaah on that which we had prepared for sale.” (Narrated by Abu Dawood) 

‘Umar said to Hamaas, “Pay the zakaah on your wealth.” He said, ‘I only have some quivers and leather.” He said, “Estimate how much they are worth and pay the zakaah.” Imam Ahmad (may Allaah have mercy on him) quoted this story as evidence. 

It was narrated from Abu Hurayrah (may Allaah be pleased with him) that the Messenger of Allaah (peace and blessings of Allaah be upon him) said: “With regard to Khaalid, you have been unfair to Khaalid, because he is keeping his shields and weapons for the purpose of jihaad.” (Agreed upon). Al-Nawawi and others said: This indicates that it is obligatory to pay zakaah on trade goods, otherwise the Prophet (peace and blessings of Allaah be upon him) would not have explained Khaalid’s excuse.  

Al-Bukhaari and Muslim narrated a marfoo’ report from Abu Hurayrah (may Allaah be pleased with him) in which it says: “The Muslim does not have to pay zakaah on his slave or his horse.”  Al-Nawawi and others said: This hadeeth is the basis of the view that there is no zakaah on wealth kept for personal use. 

Shaykh ‘Abd al-‘Azeez ibn ‘Abd-Allaah ibn Baaz, Shaykh ‘Abd al-Razzaaq ‘Afeefi and Shaykh ‘Abd-Allaah ibn Qa’ood. 

Fataawa al-Lajnah al-Daa’imah, 9/186, 187 

Thirdly: 

With regard to the jewellery that you own, if it is gold and silver then you have to pay zakaah on it at a rate of 2.5% if it reaches the nisaab; the nisaab for gold is approximately 85 grams. 

If it something other than gold and silver – such as rubies and coral – and it is worn as adornment, then there is no zakaah on it. If it is acquired for the purpose of trade, then zakaah must be paid on it. 

Shaykh Ibn Baaz (may Allaah have mercy on him) said: 

Gold is the thing on which zakaah is due; as for precious stones and diamonds, no zakaah is due on them unless they are for trade purposes. 

Majmoo’ Fataawa wa Maqaalaat Mutanawwi’ah li’l-Shaykh Ibn Baaz, 14/121 

The scholars of the Standing Committee said – in a fatwa that covers more than was mentioned in the question –  

The fact that zakaah must be paid on coins – whether gold or silver – has been proven in the Qur’aan and Sunnah and by scholarly consensus. Trade goods are not sought in and of themselves, rather what is sought through them is coins, whether gold or silver. Matters are judged according to their purpose, because the Prophet (peace and blessings of Allaah be upon him) said: “Actions are but by intentions.” Hence zakaah is not due on a slave who is acquired as a servant, or on a horse that is acquired to be ridden, or on a house that is acquired to be lived in, or on a garment that is acquired to be worn, or on chrysolite, rubies, coral etc that are acquired for use as adornments. But if all of these or similar things are acquired for the purpose of trade, then zakaah must be paid on them, because the purpose behind them is to acquire gold and silver coins or whatever is used in their place… Based on this, whoever withholds zakaah on whatever trade goods he has is sinning… 

Fataawa al-Lajnah al-Daa’imah, 9/312, 313 

The questioner says, “And we have some different assets of 1 million rs.” If these things are gold or silver, or prepared for sale, then zakaah is due on them; if what is referred to is things that are used such as cars, furniture, etc, then there is no zakaah on them. 

In conclusion: 

The questioner should evaluate the products that he has at the end of the year and add their value to whatever money, gold and silver he has, and then pay zakaah on the total amount, at a rate of one-quarter of one-tenth (2.5%). 

And Allaah knows best.

Zakat in individual amounts will not reach the level of nisaab

I put some money in my young children’s name into shares of an investment company. Should I put it all together when calculating zakaat, or should I work it out individually, knowing that if I do not put it all together, the individual amounts will not reach the level of nisaab?

Praise be to Allaah.

We put this question to Shaykh Muhammad ibn Saalih al-‘Uthaymeen (may Allaah preserve him) and he answered as follows: “Every person has his own money, so if it reaches the level of nisaab, he should pay zakaat, otherwise he should not. But does he have other children to whom he has given the same? If he has other children then let him fear Allaah and treat them fairly, “to the male, a portion equal to that of two females” [al-Nisa’ 4:11 – interpretation of the meaning]. If he does not have other children, then the matter is clear. If he has other children and he gives them the same as he has given to these, then he has treated them fairly and he does not have to do anything more… And Allaah knows best.”

Zakaah on gold that is intended for use

I would like to request you to explain to me and my brothers about the matter of zakaah on gold or gold and silver jewellery that is intended for use, not for buying and selling. Some people say that there is no zakaah on gold that is intended for wearing, and others say that there is zakaah on all gold, whether it is for use or for trading, and that the ahaadeeth which say that there is zakaah on gold that is intended for use are stronger than the ahaadeeth which say that there is no zakaah on it. I hope that you will answer this query.

Praise be to Allaah. 

The scholars are agreed that zakaah is obligatory on gold and silver jewellery if it is a kind of adornment that it is haraam to use, or if it is prepared for trading etc. But if it is a permissible kind of jewellery that is intended to be used or loaned, such as a silver ring or women’s jewellery, or things that it is permitted to use to adorn weapons, then there is a difference of scholarly opinion as to whether zakaah is obligatory on these things. Some scholars say that zakaah is obligatory on them because they are included in the general meaning of the aayah (interpretation of the meaning):

“And those who hoard up gold and silver (Al‑Kanz: the money, the Zakaah of which has not been paid) and spend them not in the way of Allaah, announce unto them a painful torment” [al-Tawbah 9:34]

Al-Qurtubi said, in his tafseer of this aayah: “Ibn ‘Umar explained the meaning of this in Saheeh al-Bukhaari, when a Bedouin said to him, ‘Tell me about the aayah (interpreation of the meaning), “And those who hoard up gold and silver.”’ Ibn ‘Umar said: ‘(It means) the one who stockpiles them and does not pay zakaah on them – woe to him. This was before (the order to pay) zakaah on them was revealed, and when it was revealed, Allaah made it a means of purification of wealth.’” (Narrated by al-Bukhaari, 2/111, ta’leeqan; 5/204, also ta’leeqan. Ibn Maajah, 1/569-570, no. 1787. Al-Bayhaqi, 4/82).

Other ahaadeeth also imply this, such as the hadeeth narrated by Abu Dawood, al-Nasaa’i and al-Tirmidhi from ‘Amr ibn Shu’ayb from his father from his grandfather, (who said) that a woman came to the Prophet (peace and blessings of Allaah be upon him) with her daughter, on whose hands were two heavy bracelets of gold. He said to her, “Do you pay zakaah on these?” She said, “No.” He said, “Would you like Allaah to replace them for you with bracelets of fire on the Day of Resurrection?” So she took them off and gave them to the Prophet (peace and blessings of Allaah be upon him) and said, ‘These are for Allaah and His Messenger.’”

(Narrated by Ahmad, 2/178, 204, 208; Abu Dawood, 2/212, no. 1563; al-Tirmidhi, 3/29-30, no. 637; al-Nasaa’i, 5/38, no. 2479, 2480; al-Daaraqutni, 2/112; Ibn Abi Shaybah, 3/153; Abu ‘Ubayd in al-Amwaal, p. 537, no. 1260 (Harraas edn.); al-Bayhaqi, 4/140).

 It was narrated by Abu Dawood in his Sunan, al-Haakim in al-Mustadrak and al-Daaraqutni and al-Bayhaqi in their Sunans that ‘Aa’ishah (may Allaah be pleased with her) said: “The Messenger of Allaah (peace and blessings of Allaah be upon him) entered upon me and saw on my hands rings of silver. He said, ‘What is this, O ‘Aa’ishah?’ I said, ‘I had them made so that I could adorn myself for you, O Messenger of Allaah.’ He said, ‘Do you pay zakaah on them?’ I said, ‘No’ or ‘Whatever Allaah wills.’ He said, ‘This would be enough to take you to Hell.’”

(Narrated by Abu Dawood, 2/213, no. 1565 – this version was narrated by him; al-Daaraqutni, 2/105, 106; al-Haakim, 1/389-390; al-Bayhaqi, 4/139)

 It was narrated that Umm Salamah said: “I used to wear jewellery of gold, and I said, ‘O Messenger of Allaah, is this kanz (money, the Zakaah of which has not been paid, cf. al-Tawbah 9:34)?’ He said, ‘Whatever reaches the amount at which zakaah is obligatory, then pay the zakaah. Then it will not be kanz.’”

(Narrated by Abu Dawood, 2/212-213, no. 1564; al-Daaraqutni, 2/105; al-Haakim, 1/390; al-Bayhaqi, 4/83, 140).

 Some scholars said that there was no zakaah to be paid on it, because by using it in a permissible manner, it becomes like clothing and other items, and is not like a product that has a commercial value. They responded to the general meaning of the aayah [al-Tawbah 9:34] by pointing out that the practice of the Sahaabah excluded gold that was used for adornment. It was reported with a saheeh isnaad that ‘Aa’ishah (may Allaah be pleased with her) used to look after her brother’s orphaned daughters in her apartment. They had gold jewellery but she did not pay zakaah on it. Al-Daaraqutni narrated with his isnaad from Asmaa’ bint Abi Bakr (may Allaah be pleased with her) that she used to adorn her daughters with gold jewellery, and she did not pay zakaah on it, (although its value was) nearly fifty thousand. (Sunan al-Daaraqutni, 2/109)

 Abu ‘Ubayd said in his book al-Amwaal: “Ismaa’eel ibn Ibraaheem told us, from Ayyoob, from Naafi’, from Ibn ‘Umar, that he would marry one of his his daughters for ten thousand (as mahr), of which he would make her jewellery four thousand, and they did not pay zakaah on that.” (A similar report was narrated by al-Daaraqutni, 2/109; Abu ‘Ubayd in al-Amwaal, p. 540, no. 1276 (Harraas edn.); al-Bayhaqi, 4/138).

 He said: “Ismaa’eel ibn Ibraaheem told us, from Ayyoob, from ‘Amr ibn Deenaar, who said: ‘Jaabir ibn ‘Abd-Allaah was asked, “Is there any zakaah on jewellery?” He said, “No.” He was asked, ‘What if it reaches (the amount of) ten thousand?” He said, “That is a lot.”’” (Narrated by al-Shaafa'i in al-Musnad (edited by al-Sindi), 1/228, no. 629; al-Umm, 2/41; also narrated by Abu ‘Ubayd in al-Amwaal, p. 540, no. 1275 (Harraas edn.); al-Bayhaqi, 4/138).

 The more correct of these two views is the view that zakaah on jewellery is obligatory, if it reaches the nisaab (amount of wealth at which zakaah becomes obligatory), or if the owner possesses enough gold, silver and trade goods to complete the nisaab – because of the general meaning of the ahaadeeth which state that zakaah is obligatory on gold and silver. There is no saheeh hadeeth which exclused it (jewellery) as far as we know. The ahaadeeth of ‘Abd-Allaah ibn ‘Amr ibn al-‘Aas, ‘Aa’ishah and Umm Salamah quoted above mention this, and these are jayyid ahaadeeth with no valid criticism concerning their isnaads, so we should act upon them. Although al-Tirmidhi and Ibn Hazm regarded them as da’eef (weak), there is no solid evidence for this, as far as we know. We should note that al-Tirmidhi (may Allaah have mercy on him) may be excused for what he said, because he quoted the hadeeth of ‘Abd-Allaah ibn ‘Amr with a da’eef isnaad, but it was narrated by Abu Dawood, al-Nasaa’i and Ibn Maajah with a different, saheeh, isnaad, which al-Tirmidhi probably did not discover.

 And Allaah is the source of strength. May Allaah bless our Prophet Muhammad and his family and companions, and grant them peace.

Zakaah on shares for resale with specification of gain (murabahah)

I have an account with one of the investment companies. This company deals with Islamic investments (silent partnerships (mudaarabah) – rentals – resales with specification of gains (muraabahah)), whereby it collects money and invests it in business, real estate, industrial or agricultural projects within the Kingdom (Saudi Arabia) or in Muslim countries, in order to serve Islam and the Muslims. They give us the profits annually in the form of these shares. My question is: should I pay the annual zakaah on my wealth based on the capital which I paid to this company, or on the profits which I take annually, and what is the rate of zakaah that I have to pay?

Praise be to Allaah.

With regard to the mudaarabah and muraabahah shares, you should pay zakaah on both the principle and the profits, when one full year has passed on the capital. With regard to the shares which are held in agricultural, real estate and industrial companies, zakaah is due on the profits if they reach the nisaab (minimum amount) on their own or when added to others, and one full (hijri) year has passed. The rate of zakaah is one quarter of one tenth, i.e., 2.5 %. With regard to the shares, zakaah is not due on them if they are not available for sale. But if they are available for sale then zakaah must be paid on them and their profits when one full (hijri) year has passed, as with all other trade goods. If the agricultural company produces grains, dates or grapes then the prescribed zakaah must be paid on them if the amount of each of them reaches five wasq or more. And Allaah is the Source of strength. May Allaah bless our Prophet Muhammad and his family and companions, and grant them peace. 

What are the shar’i ways of extracting rikaaz?

What are the shar’i ways of extracting the treasures of the earth – rikaaz?.

Praise be to Allaah.

Rikaaz refers to what is buried in the earth of the wealth of the Jaahiliyyah. The people of the Jaahiliyyah are the ones who existed before the coming of the Prophet (peace and blessings of Allaah be upon him), no matter what religion they followed. Islam has enjoined that when it is extracted, the khums be paid on it, as zakaah according to some scholars and as fay’ according to others. The rest belongs to whoever extracted it, if it was extracted from land that he owns, or from ruins or common land such as the street and so on. 

Ibn Qudaamah al-Maqdisi (may Allaah have mercy on him) said: 

Rikaaz is that which is buried in the earth, and the word is derived from the root rakaza … From this root is also derived the word rikz, which means a hidden voice or whisper. Allaah says (interpretation of the meaning): “or hear even a whisper [rikzan] of them” [Maryam 19:98]. 

The basic principle concerning the zakaah on rikaaz is that which was narrated by Abu Hurayrah from the Messenger of Allaah (peace and blessings of Allaah be upon him): “There is no compensation for damage done by animals, and the khums is due on rikaaz.” Agreed upon. 

There is also scholarly consensus on this matter. Ibn al-Mundhir said: We do not know of anyone who disagreed with this hadeeth except al-Hasan who made a distinction between that which is found in dar al-harb and that which is found in the land of the Arabs. It was said that the khums is due on that which is found in dar al-harb and zakaah is due on that which is found in the land of the Arabs. Al-Mughni (2/610) 

Shaykh Muhammad ibn Saalih al-‘Uthaymeen (may Allaah have mercy on him) said: 

Not everything that is buried is rikaaz, rather it is everything that was buried during the Jaahiliyyah, and what is meant by the Jaahiliyah is before Islam, for example, if we find buried treasure in the earth, and we extract it and find on it signs of the Jaahiliyyah, such as money which is known to come from a time before Islam, or there is a date on it that is before Islam, and so on. 

“The khums is due on it whether the amount is small or large” means that there is no condition of nisaab (minimum amount), because of the general meaning of the words of the Prophet (peace and blessings of Allaah be upon him): “The khums is due on rikaaz.” 

But the scholars differed concerning the khums – does it come under the heading of zakaah or fay’? This is based on their difference of opinion concerning the definite article al- in the words of the Prophet (peace and blessings of Allaah be upon him) in the hadeeth, “The khums (al-khums)” – does it serve to define the amount that is due on it or is just confirming that which is established, which is that anything that is fay’ is subject to the khums? 

Some of the scholars said that it is zakaah, so the al- is defining the amount that is due on it. 

This view implies the following: 

1-    That the rate of zakaah on rikaaz is higher than the rate on other kinds of wealth that are subject to zakaah, because half of one-tenth, one-tenth, a quarter of one-tenth, and one sheep out of every forty are all less than one-fifth (the khums).

2-    The nisaab is not a condition, so the khums must be paid on a little or a lot.

3-    It is not essential that it be of a specific type of wealth. The khums must be paid on it whether it is gold, silver or other metals, unlike other kinds of zakaah. 

The correct view according to our companions – may Allaah have mercy on them – is that it is fay’, so the al- in al-khums is confirming that which is established, not defining the amount that is due on it, i.e., it is the khums that is known in Islam, and it is the khums on booty which is fay’, which is to be spent in the public interests of the Muslims. This is the more correct view, because regarding it as zakaah goes against what is known about zakaah, as has already been explained in the three previous answers. 

Al-Sharh al-Mumti’ (6/88, 89). 

If a person finds rikaaz on which there are no signs to indicate whether it was buried during the Jaahiliyyah, it comes under the heading of luqtah (lost property). He should wait for a whole year, then it is permissible for him to take possession of it after that, unless he finds out for sure who its owner is, in which case he must give it to him, or compensate him by giving him its value at the time when he disposed of it. 

It is not permissible to look for treasure in land that belongs to anyone, because this is disposing of another person’s wealth unlawfully. Whoever finds wealth in land belonging to someone else must give it to the owner of the land. 

Sensible people should not waste their lives looking for such treasure, because it is a waste of time and wealth, in addition to the fact that it results in penalties imposed by the state. A man may spend his whole life and not find a single coin, and another man may work in farming and tilling his land, then Allaah may bless him with finding something that will make him free of want for the rest of his life. 

Secondly: 

Many people employ means that are not acceptable in sharee’ah for extracting this treasure. Some of them seek the help of magicians, soothsayers and other charlatans, others rely on their contact with the jinn. All these methods are unacceptable in Islam and constitute grave sins. 

Shaykh Muhammad ibn Saalih al-‘Uthaymeen (may Allaah have mercy on him) was asked:  

There are people who summon the jinn by means of incantations, and they make them extract treasure that has been buried in the town’s land since ancient times. What is the ruling on this action? 

He replied: 

This action is not permissible. These incantations by means of which they summon the jinn and employ them are – in most cases – not free of shirk, and shirk is a serious matter. Allaah says (interpretation of the meaning):  

“Verily, whosoever sets up partners (in worship) with Allaah, then Allaah has forbidden Paradise to him, and the Fire will be his abode. And for the Zaalimoon (polytheists and wrongdoers) there are no helpers”

[al-Maa’idah 5:72] 

The one who goes to them tempts them and encourages them; he makes them think that what they are doing is right and he tempts them by means of the money that he gives to them. 

We should boycott these people and stop going to them, and warn our Muslim brothers against going to them. In most cases these people trick the people and take their wealth unlawfully, and tell lies. If (their predictions) happen to coincide with the divine decree, they start to broadcast it among the people, saying “We said such and such and it happened,” but if it does not happen, they make false claims and say that this is what prevented it from happening. 

I offer the following advice to those who are suffering with this matter: Beware of telling lies to the people and associating others with Allaah, may He be glorified and exalted, and taking people’s wealth unlawfully, for the end of the world is nigh and the reckoning of the Day of Resurrection is severe. You have to repent to Allaah from this deed, and ensure that your deeds are correct and your wealth is halaal. And Allaah is the Source of strength.  

Fataawa al-Shaykh Ibn ‘Uthaymeen (2/question no. 116) 

You should understand that what makes many people pursue these illusions and seek them from the magicians and charlatans etc is the love of luxury and their longing for riches, without implementing the means of becoming rich, and seeking wealth in inappropriate ways, as well as their laziness and inclination towards idleness.  

Ibn Khuldoon (may Allaah have mercy on him) said:

What makes people do that in most cases, in addition to their naivety, is an inability to seek a living in the normal ways such as earning through trade, agriculture and handicrafts, so they seek it in deviant ways and unnatural ways, because they are not able to strive to earn a living and they do not want to work hard for it. They do not realize that they are letting themselves in for trouble by seeking wealth in inappropriate ways, and they expose themselves to punishments, and their motive for that is their extreme love for a life of luxury, which a regular way of earning would not be able to support.

So when a person fails to earn a living in the natural manner, his only answer is to wish to have great wealth in one go, without making any effort, in order to support the way of life to which he has become subservient. Hence you will find him very keen and doing his utmost to earn money in that way.  Therefore you will see that most of those who strive for that are those who are living a life of luxury of the ruling class and those who live a life of ease in the cities such as Egypt etc. So you will find many of them very keen to seek wealth in that manner, and they ask people coming from other cities and countries about possible sites of treasure. 

Muqaddimat Ibn Khaldoon (p. 385, 386) 

Ibn Khaldoon wrote a valuable chapter on this in his Muqaddimah (pp 384-389). 

But if the Muslim avoids haraam ways such as incantations, seeking the help of the jinn, magic and soothsaying, or transgression against the property of others, such as land, houses and so on, then there is no sin on him if he finds any of that buried treasure, and there is no sin on him if he seeks it and looks for it, if he has knowledge of the ways of looking for it, and he does not waste his life in running after mirages and dreams of treasure, like those in the past who used to seek to turn metals into gold by means of alchemy, and it was said of them: The one who seeks wealth by means of alchemy will become penniless. 

But to suggest that there is a shar’i way of looking for it, this is not correct because Islam did not come to explain such matters, rather it came to explain what is permitted and what is forbidden. 

With regard to tools and things that people have invented to find out about it by physical means and indications, that is permissible for the one who learns about it and uses it. 

And Allaah knows best.

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Zakaah on wealth earned during the year

How should Zakat be calculated? When the wealth reaches the nisaab (the amount that determines whether Zakat is obligatory)? Or when a full year turns on it? If the amount I have when a nisaab completed was 10.000, but became 50.000 with the end of the year. On which amount shall I calculate the Zakat of wealth?.

Praise be to Allaah.

Firstly: 

In order for zakaah to be due on money, two conditions must be met: 

1 – That it reaches the nisaab (minimum threshold)

2 – That one year has passed since it reaches the nisaab. 

If the money is less than the nisaab, then no zakaah is due on it. 

If it reaches the nisaab, and one year has passed, i.e. a lunar (hijri) year has passed since the time when it reached the nisaab, then zakaah becomes due at that point. 

The nisaab is the equivalent of 85 grams of gold or 595 grams of silver. 

The rate that must be paid for zakaah is one quarter of one tenth (2.5%). 

Secondly: 

If the money reaches the nisaab and it is 1000 for example, then at the end of the year it is 5000, how should zakaah be paid? 

That depends: 

1 – If this extra amount stems directly from the original amount, such as if the thousand was invested, and earned four thousand, then you should pay zakaah on the entire amount at the end of the year, because the profit on money is connected to the capital. 

2 – If this extra amount did not stem directly from the original amount, rather it is money that was acquired by different means, such as an inheritance or a gift, or it is the price of something that you sold, and so on, then a separate year should be counted for it, starting from the day when you took possession of this extra amount. But if you want to pay its zakaah with the thousand, in advance, there is nothing wrong with that. 

3 – This extra amount may come gradually, such as money that a person saves from his salary, so he saves 500 one month, and 1000 another month, until at the end of the year he has collected 4000. So you have the choice of paying the whole amount when one year has passed for the thousand, in which case you will have paid zakaah in advance for the money for which a year has not yet passed, or you can pay the zakaah for each sum separately when its year has passed, but this entails some kind of hardship, as you will be paying zakaah several times in one year. 

For more information please see question no. 50801. 

And Allaah knows best.