When Do I Pay Zakat on Tax Return Money?

Answered by Sidi Wasim Shiliwala

Question: This is how I pay my zakat every year:
On the 8th of Dhul Hijjah, I calculate my wealth that I have to pay zakat on, and take out 2.5% for zakat.
My question is as follows: If I receive tax return money 3 months after I pray zakat, should I pay the zakat on tax returns, or will the tax returns zakat be due on the upcoming 8th of Dhul Hijah (if I didn’t spend it)?

Answer: Walaikum As-salaam wa Rahmatullahi wa Barakatuhu,

You are only required to pay the zakat you owe on the date you pay it. Therefore, regardless of what money you might gain (or lose) after the 8th of Dhul Hijjah, you only pay zakat on what you possess on that day.

As you indicated, you will only have to pay zakat on the money you receive from tax returns if you still have that money the following year. Any money you gain or lose between your zakat payments will not affect your calculations.

See the following answers for more guidance on this matter:

How Do You Determine How Much You Pay for Zakat When You Constantly Receive New Wealth During the Year?

Is Zakat Due on Savings for Which Zakat was Paid the Previous Year?

And Allah knows best.

Jazakum Allahu Khairan,
-Wasim

Checked & Approved by Faraz Rabbani