Do Zakatable Assets Need to Stay Above Nisab All Year?

The question of whether Zakatable assets need to stay above the Nisab throughout the entire year depends on the Islamic school of thought you follow. 

Here’s a breakdown:

Hanafi School:

• Zakat is due if a person’s wealth reaches or exceeds the Nisab on their Zakat anniversary.
• Fluctuations in wealth during the year are generally disregarded.
• However, if wealth falls to zero or goes into debt, Zakat is no longer required.

Shafi’i and Hanbali Schools:

• Zakat is only due if a person maintains wealth equal to or greater than the Zakat Nisab for the entire year.
• If the net wealth drops below the Nisab during the year, Zakat will no longer be applicable for that year.

Key Differences:

• The Hanafi school provides flexibility, not requiring assets to stay above the Nisab throughout the year, as long as it is met on the Zakat anniversary.
• The Shafi’i and Hanbali schools require consistent maintenance of assets above the Nisab for the full lunar year.

Ultimately, it’s important to follow the guidelines of your school of thought.

And Allah knows best!