Answered by Ustadh Tabraze Azam
Question: Assalam alaykum
I have purchased gold using a credit card. Now I am paying 1300 aed every month but the gold is already with me. I don’t have much savings. But alhamdulaillah I am earing 6500 aed. Do I have to pay zakat on that gold?
Answer: Wa alaikum assalam wa rahmatullah,
Zakat is payable on your assets, less debts. This is irrespective of your income.
You need to determine whether or not you have the zakatable minimum (nisab), and whether you have been in possession of it before this point. If one lunar year has passed, you would need to pay zakat. [see: e-nisab.com]
For further information, please see: Zakat: How to Calculate & Whom to Give and: Is Your Zakat Due? – A Reader and Resources on Giving Zakat
And Allah Most High alone knows best.
[Ustadh] Tabraze Azam
Checked and Approved by Shaykh Faraz Rabbani
Ustadh Tabraze Azam holds a BSc in Computer Science from the University of Leicester, where he also served as the President of the Islamic Society. He memorised the entire Qur’an in his hometown of Ipswich at the tender age of sixteen, and has since studied the Islamic Sciences in traditional settings in the UK, Jordan and Turkey. He is currently pursuing advanced studies in Jordan, where he is presently based with his family.