Kindly calculate Zakaat for following: Cash on hand R20000. Car financing bal.R25000. Monthly car installment R1450.

Answer:

In the Name of Allah, the Most Gracious, the Most Merciful.

As-salāmu ‘alaykum wa-rahmatullāhi wa-barakātuh.

In principle, if one does not possess the Nisaab (quantum) of Zakaat or one’s liabilities exceed one’s assets, then one is not obligated to pay Zakaat.

With regards to your question:

If you have only R20.000 and other Zakatable assets, then you are not obligated to pay Zakaat since your liabilities exceed your total assets.[1]

The above ruling will only apply if Zakaat had not become Wajib before you had taken out a car financing loan.[2]

Kindly refer to the following Zakaat table for more details:

Personal Wealth

Amounts:

1. Amount of Cash and Savings at home or in the bank

R 10,000

2. Current value of any gold and silver jewelry, coins, utensils etc

R 5,000

3. Value of assets and merchandise for trade

R 20,000

4. Receivables and loaned amounts to others

R 5,000

Total these amounts here:

R 40,000

Amount Debts to be paid:

R 20,000

Subtract the total amount of debts for the year from the above amount.

Nett Total of Zakatable Wealth

R 20,000

if the net total of Zakatable Wealth is more than the Nisab amount then…

Multiply the net total by 2.5% (nett amount x 0.025)

R 500

And Allah Ta’āla Knows Best

Moulana Ismail Desai,
Student Darul Iftaa
Durban, South Africa

Checked and Approved by,
Mufti Ebrahim Desai.