Question:
Put it in an investment for a period of five years, i.e. return with profits after five years.
How is the zakat due in this case? If the answer is to add 100 thousand every year, how should he act if he does not have additional money? And if the answer is to add after the amount and profit arrive after five years?
Does he add for the five years or once for what arrives after five years?
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Prof. Dr. Monzer Kahf answer:
Dear brother Majd
Peace be upon you and Allah’s mercy and blessings
Questions of scrutiny and trying to evade zakat are neither from science nor from etiquette. The questioner’s conclusion is that…
Zakat is obligatory on him at a rate of 2.5% every lunar year (i.e. every 354 days). The basic principle is that he pays it every year, even from other sources. If he is unable to do so, there is no prohibition in delaying it until he receives all the money after five years, based on the rule that all money for which zakat is paid is from itself.
With my best regards and kindest regards
Prof. Dr. Munther Qahf
Islamic Finance and Economics