How To Manage Your Missed Zakat

Zakat is an important pillar of Islam and a fundamental part of being a Muslim. It is both a tool for self-purification and a mechanism for social cohesion. Similar to Salah (prayer) and Siyam (fasting), a Muslim who has not fulfilled this obligation has a religious duty to make up for it and rectify the situation. Failing to fulfill this obligation without a valid reason is an act of disobedience to Allah subhana wata ‘alaa.  

The first step toward making up one’s missed Zakat is to acknowledge it and seek forgiveness (Tawbah) from Allah. 

The following steps must then be taken to make up for Missed Zakat: 

1. Identify the years in which the payment of Zakat was missed.
2. Confirm that Zakat was in fact due during each of the years missed based on the Nisab value that year.

3. Identify the Zakatable assets held in those years, minus the liabilities. 

4. Calculate Zakat for each year based on the net Zakatable assets possessed in that year. 

5. Pay out the missed Zakat without further delay. 

Payment of Zakat is strictly linked to the accumulation of Nisab. After a person reaches the Nisab (which is equal to 85 grams of pure gold), he/she allows the passing of 12 months in the Islamic calendar. If throughout the year and after 12 months, the Nisab (or more) is still held, then Zakat is due on this person. This date then becomes his/her personal Zakat anniversary, and every year Zakat is paid on the same day, given the Nisab is continued to be retained consistently.  

How Do We Calculate the Missed Zakat? 

First Step:

Identify the years in which you missed the payment of your Zakat. If you are not sure about the number of years, then use your best estimation or judgment to determine the period in which you neglected or you were not able to pay the zakat. 

Second Step:

Determine the Nisab of each year. The value of the Nisab is equivalent to the value of 85 grams of pure gold, which varies from one year to the next.  

Therefore, you need to look at the historical value of gold within the past years to determine if you were obligated to pay Zakat or not. A historical Nisab table for the last 30 years.  

Third Step:  

Identify your zakatable assets during the period of every single year in which you missed the payment of Zakat. 

At this moment, you need to consult the National Zakat Foundation or any other source of authentic knowledge about Zakat to determine which type of wealth is zakatable. 

Fourth Step:

1. Missing Zakat for One Year:
   
   After you have calculated the value of your wealth for one particular year, you determined that you owned the Nisab and you were able to keep the same amount or more in your savings throughout the whole lunar year, then you need to do the following:
   
   Deduct the value of any short-term loans which were paid off in the succeeding year, and then pay the value of 2.5% from the remaining amount.

2. Missing Zakat for Many Consecutive Years:
   
   If a person has missed the payment of zakat for many consecutive years, he/she should calculate the Zakat of each year in the same way someone would do when missing the payment of one single year.  
   
   The only difference is that they are allowed to deduct the amount of 2.5% from the total value of the savings (net Zakatable assets) in each year except for the first year.

Invalid Reasons for Not Paying Zakat 

There are many invalid reasons for missing or not paying Zakat. Some of the common reasons are outlined below: 

• Saving up to go for Hajj
• Saving money to buy a house
• A student thinks that no Zakat is due on him/her because of the student loan
• One who consistently has wealth above the Nisab but no regular income or employment.
• A person with a disability who is saving money and has collected more than the Nisab.
• One who is not consistent in other acts of worship feels paying Zakat shouldn’t be a priority.
• Payment of taxes is sufficient, and Zakat is no longer necessary.

If you have more questions about missed Zakat, or Zakat in general, you can book a consultation with one of our Zakat experts. This service is free of charge! 

Click here for more information about zakat.  

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