I own a business and keep certain amount for business expenses (I.e bank account maintenance, petty cash, tax payment liabilities, insurance, brokerage fees and some cash in case any unexpected expense arises etc) all of this is for working capital, it is never a fixed amount, some months it’s higher some its lower, this is not profit, this is not a share, the business has no assets, this is simply some cash put aside to pay for the business expenses as need arises, am I to pay zakat on this amount? If I do have to pay zakat how do I calculate it as the business started sometime in 2019. Please explain in the light of Quran and sunnah.
Bismillahi Ta’ala
Walaikum Assalam Warahmatullah
In principal, any monies that one possess are considered zakatable assets. Their potential intended purpose does not affect the zakat calculation. If on the calculation date you have any contingent fund of liquid cash or monies set aside, then they will be treated as zakatable assets.
You should go back to your calculations made in the past years to see how addition of these monies to your zakatable assets would affect the outcome for that particular year and then reconcile your zakat paid. If you have overpaid your zakat over the years, then the access can be reconciled with the next years payment. If you have underpaid, then add that deficiency to your current year payment.
Wallahu A’lam
And Allah Ta’āla Knows Best
Mufti Faisal al-Mahmudi