Friday, November 24, 2017 - 6 Rabi' al-Awwal 1439

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Zakat on money used for purchasing necessary items

Zakat on money used for purchasing necessary items

Answer

For money to be zakatable, the following conditions must be met:

- It must belong exclusively to the owner and he must have complete control of it.
- It must be open to growth.
- It must exceed his needs.
- It must have been in his possession for one lunar year.
- It must reach the zakatable amount which is 85 grams worth of gold.
- The owner must be free of anything to prevent him from paying zakat such as debt and the like.

Of these conditions, what concerns us here is that the money be subject to growth and in excess of the owner’s needs. Hanafi scholars have maintained that the first condition is mainly due to the meaning of zakat, which is growth. By this, they do not mean actual growth as this is not possible, but rather that it be subject to growth through investment and trade. It must also be in excess to the owner’s needs since through this, he fulfills the meaning of excess wealth and, by using this excess, he fulfills the goal of self-purification.
Based on this, zakat is not due except on money that is in surplus to basic needs and which is subject to growth and investment. The possibility of investment indicates that the money exceeds one’s basic needs. Money needed to purchase necessities is not zakatable.
And God the Almighty knows best.
 

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