If someone has a business renting equipment’s like compactors and jackhammers etc. and the all those tools worth $60,000.00. That person was in a debt and also had to sell a piece of land to repay it and the debt was repaid. The land was sold 4 months ago. Does that person have to pay zakat on business and the remaining amount of money? I was told that a year has to pass on the savings before paying.
Wa Alaikum Assalaam,
Zakaat is not paid on equipments that are for rent. It is only paid on items and equipments you have for sale. Hence, you will not be required to pay zakat on the compactors, jack hammer etc. What you will have to do is pay zakat on whatever monies which may come about from rentals and are together with your savings. After a year has passed over your Nisaab, then you will pay 21/2 % on the total amount of money in your savings.
A year is not required to pass over your savings specifically. From the time your money (savings) had reached the nisaab, you will check one year from that date. Then when one year has passed from that date, you will look at all the monies which you have achieved during the course of the year. This will include monies gained from renting equipments and the money which remained from the sale of the land after repaying the debt.
Upon the completion of the year, you will pay Zakaat upon the entire amount after subtracting whatever debts, bills etc. you will have to pay from that money.
And Allah Knows Best.
Mufti Waseem Khan.