Zakat on accounts

http://darulfiqh.com/is-zakat-payable-on-fixed-term-deposit-accounts-in-islamic-banks-managed-under-wakalah/

Is Zakat payable on Fixed Term Deposit accounts in Islamic Banks managed under Wakalah?

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

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

The Answer:

After discussing with the Shariah scholars at Islamic banks, we understand that in many Fixed Term Deposit Accounts, monies taken from the liability’s side of Islamic banks are generally invested in commodities, Sukuk as well as Home Purchase Plans in the asset’s side of the bank.  These investments are for resell and capital gain purposes.  A Wakalah fee is charged for the service provided in managing the funds of the depositors and the depositors are given profit in return.

The entire holding in such an account is subject to Zakat as the funds are used to buy commodities to resell for capital gain.  If the funds are utilised in non-Zakatable assets, the answer will be different.

And Allah Ta’ālā Alone Knows Best

Mufti Faraz Adam al-Mahmudi, 
www.darulfiqh.com

http://darulfiqh.com/how-do-a-couple-calculate-zakat-on-a-joint-account/

Question:

How would a couple calculate Zakat on a joint account?

Answer:

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

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

Primarily, each spouse is responsible to calculate and pay their own Zakāt.   However, one spouse may pay Zakāt on behalf of the other.

If the current share of one spouse in the balance can be determined on their Zakāt paying day, the spouse will be responsible to pay Zakāt on that amount.  He/she will add her share of the balance to one’s total gross assets when calculating Zakāt.  However, if each spouses’ current share cannot be determined, a husband and wife may treat the balance co-owned equally.  Thus, each spouse will be responsible to pay Zakāt on 50% of the balance.[1]

And Allah Ta’ālā Alone Knows Best

Mufti Faraz Adam al-Mahmudi, 
www.darulfiqh.com


http://darulfiqh.com/is-the-profit-and-loss-account-used-for-zakat-calculation/

Question:

Is The Profit and Loss Account Used For Zakat Calculation?

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

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

The Answer:

A company’s Profit and Loss Account is irrelevant for Zakat calculation.  A company may have had a net loss but yet be required to pay Zakat.  Zakat is not dependent on profits; rather, Zakat is calculated on the current Zakatable assets of a company.  Therefore, to calculate Zakat, a company will use the Balance Sheet to determine net Zakatable assets in the company.

And Allah Ta’ālā Alone Knows Best

Mufti Faraz Adam al-Mahmudi, 
www.darulfiqh.com