Question
It’s mentioned in the books of Fiqh that a person who has money that reaches Nisaab, and at the same time he has حوائج اصلية (items of necessity) which are of a value that brings the amount of wealth he posses to less than nisaab, he will not be zakaatable.
It is mentioned in رد المحتار as well as البحر رائق from amongst حوائج اصلية is دور السكنى and دواب الركوب which is translated in our terms a house to live in and a car.
So is it correct to say that if a person doesn’t have a house but he is renting and saving up for a house, does it mean that he does not have to pay zakaat on his money that he is saving towards his house and like wise if a person who does not have a car but is saving towards a car will not pay zakaat on his wealth?
Answer
It is not correct to say that the person saving money for a house or car (that he has not as yet purchased) does not have to pay Zakaat on that saved amount which reaches Nisaab. In fact, he will be obliged to pay Zakaat on it; as soon as حولَحوالن takes place.
.
Yes, when he purchases the house or car for his own necessity (resulting in him now owing the purchase price) and he needs to use the saved money to pay for it, then he does not have to pay Zakaat any longer on that saved amount.
Checked and Approved By:
Mufti Muhammed Saeed Motara Saheb D.B.