When Should Zakah Be Paid?

Zakah can be paid any time of the year. Many prefer to pay during the holy month of Ramadan or Rajab while others prefer Muharram, the first month of the Hijri year. Assuming Nisab is reached, and the investment is held for a full lunar year, most jurists agree that Zakah can be paid in advance, during the month of Ramadan, or when there is a special need because of a calamity, sickness or fi sabili llahi. An estimated monthly payment of Zakah is encouraged. This not only helps to spread over the payments but fulfills the purpose of Zakah sooner than later. The final calculation and reconciliation of payments, however, can be done at the end of each lunar year.

The legal provision that a complete lunar year should elapse starting from when the nisab was exceeded, means that a Zakah year may run at different times for different investors. If an investor chooses the fiscal or calender year end, to coincide with payment of other obligations like federal and state income taxes, one must keep in mind that the difference between the Gregorian and lunar years is 11 days, the lunar year being shorter. Zakah is calculated on the basis of lunar year and not on Gregorian calendar year.

 

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Zakah guide compiled by M. Yaqub Mirza, Ph.D. & Saturna Capital Corporation.

The methodology for Zakah calculation discussed herein has been reviewed and approved by the Fiqh Council of North America, Sharia Consultants to Amana Mutual Funds Trust. Scholarly references available on request.

Amana Mutual Funds Trust, Saturna Capital Corporation, and Saturna Brokerage Services, respectively, do not make any warranty, express or implied, and they disclaim any warranty about (i) the results to be obtained by any person in connection with the use of the Zakah calculation method outlined above (“Zakah Calculation”); (ii) the accuracy or completeness of the Zakah Calculation; and (iii) its compliance with Sharia law and other Islamic principles. Amana Mutual Funds Trust, Saturna Capital Corporation, and Saturna Brokerage Services will not be liable for any errors or omissions in the Zakah Calculation.

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