Assalaamu alaykum. I got PKRs.950,000 in May 2014 to buy a residential plot. I spent some of it, and after one year I was left with PKRs.500,000. During this one year period, I also got PKRs.2,500,000 from other sources and finaly bought a plot for PKRs.3,400,000 in June 2015. As I bought the plot after one year, I started arranging money. Now I want to know on what amount I have to pay zakah. 1. On PKRs.500,000 (the remaining amount on which one year has passed) 2. On PKRs.950,000 (the amount that I had in the start i.e., May 2014). 3. Or on PKRs.500,000 + 2,500,000 = 3,500,000 (the total amount that I had after one year passed, i.e. from May 2014 to May 2015). Please answer generally and specifically according to the amounts given above.
All perfect praise be to Allaah, The Lord of the Worlds. I testify that there is none worthy of worship except Allaah and that Muhammad is His slave and Messenger.
In paying zakah on money, it is a condition to own the nisaab (minimum amount liable for zakah), and a hawl (one whole lunar year) must have elapsed on the money. The amount of nisaab in current currencies is what is equivalent to the value of 85 grams of gold approximately, or the equivalent to the value of 595 grams of silver. For more benefit, please refer to fataawa 82490 and 82534.
Accordingly, if the amount of 500,000 PKRs reached the nisaab according to what we have clarified, then it is an obligation to pay zakah on it because one whole lunar year passed on it while in your possession.
The rest of the funds should be looked at in the same manner; if one whole lunar year passed on them before you bought the piece of land or before spending these funds, then zakah must be paid on them, and if a whole lunar year did not elapse on them, then there is no zakah on them.
Moreover, we should point out two things:
1) Zakah is calculated according to the lunar year and not to the Gregorian year, and the Hijri calendar is shorter than the Gregorian calendar by eleven days approximately.
2) You mentioned that you first possessed 950,000 and spent 450,000 from it during one lunar year. You also mentioned that you possessed 2,500,000 during the same lunar year. So if you spent the 450,000 before possessing any other subsequent funds, then the matter is as we have already mentioned; that you should only pay zakah on the 500,000 on which a whole lunar year elapsed while a whole lunar year did not elapse on the remaining funds while in your possession.
On the other hand, if you spent 450,000 after possessing an amount that is equal or more or less than them, then this means that a whole lunar year elapsed on more than 500,000 while in your possession; hence, you must pay the zakah in consideration of this, and you are the one who can determine this.
If we presume that you possessed a subsequent amount of 450,000 or more before spending what you had spent; then, in this case, the zakah should be paid on the entire sum that you first possessed, which is 950,000, since it did not decrease throughout the whole lunar year.
Finally, take note that it is not a condition that the zakatable money (of nisaab) be the same money that existed in the beginning of the hawl. What is important is to look at the total amount of money that is in your possession after other expenses while you possessed an equal amount for a whole hawl; so you cannot consider that what you spent should be deducted from the first amount in particular.
Allaah knows best.
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