Is Zakat Due Again on Savings from the Previous Year?

Yes, zakat is due again on savings from the previous year, even if Zakat has already been paid on those savings. 

Zakat is an annual obligation, and each year, on your zakat anniversary, you need to reassess your zakatable assets and pay zakat on the current value. This means that if your savings have increased or changed, zakat must be calculated again based on the total value at that time.

Here’s a clearer breakdown:

• Zakat is due annually: Zakat must be recalculated each year, even if it was paid last year.
• Total savings are reassessed each year: This includes savings in cash, gold, silver, or any other zakatable assets.
• Zakat calculation: Zakat is due on 2.5% of the total value of zakatable assets.

Lunar Year 1

• Cash: PKR 500,000
• Gold: PKR 450,000
• Silver: PKR 370,000
• Total Savings: PKR 1,320,000
• Zakat: PKR 33,000 (2.5% of PKR 1,320,000)

Lunar Year 2

• Cash: PKR 600,000 (Increase of PKR 100,000)
• Gold: PKR 500,000 (Increase of PKR 50,000)
• Silver: PKR 400,000 (Increase of PKR 30,000)
• Total Savings: PKR 1,500,000
• Zakat: PKR 37,500 (2.5% of PKR 1,500,000)

In this example, even though you paid zakat on the savings from the previous year, you must recalculate the zakat each year. The new total amount for Year 2 is higher, so the zakat due for Year 2 is greater as well.

And Allah knows best!