Two questions about zakah

Two questions about zakah

By: Dr Mohammad Akram Nadwi
Oxford

Aishah Ahmed from Manchester asked two questions about zakah, which are answered below in order.

First question:
Do you have to pay zakah on your pension? I have come across an opinion that you pay the zakat on receiving the pension amount rather than beforehand.

Answer:
You do not have to pay zakah on your pension before you actually receive it. The reason is that zakah is only due on wealth that you own and have control over. Pension funds are usually locked away until you reach a certain age or condition, so they are not considered in your possession.
Once you start receiving your pension payments, the money becomes yours, and at that stage it is treated like any other income. Zakah would only be due on the portion of your pension that you save, if it stays with you for a full lunar year and is above the nisab threshold.
So in short: no zakah is due while the pension is being built up, but once you receive it and it accumulates, it is zakatable like your other savings.

Second question:
Should you pay zakah on all gold – both jewellery (wearing purposes) & investment?

Answer:
Gold is subject to zakah if it reaches the nisab (around 85 grams of pure gold) and a lunar year has passed. However, scholars differ when it comes to gold jewellery that is worn for personal use.

Opinion 1 (Hanafi school and many contemporary scholars):
Zakah must be paid on all gold, whether it is kept as an investment or worn as jewellery. According to this view, jewellery is still wealth and therefore zakatable.

Opinion 2 (Shafi‘i, Maliki, and Hanbali schools – with some conditions):
Zakah is not due on gold that is regularly worn as personal jewellery, as it is considered for personal use rather than wealth storage. However, if the jewellery is excessive or kept mainly for saving rather than wearing, zakah would apply.

FOLLOW THE الشيخ محمد أكرم الندوي CHANNEL ON WHATSAPP:
https://WhatsApp.com/channel/0029VbAxp2qGpLHHqQ3LoY0w