For most people today, cash and bank balances — not gold or livestock — make up almost all of their zakatable wealth. The rules are simpler than you might expect, but a few modern situations (salaries, committees, foreign accounts, interest) cause real confusion. Here is what counts, what doesn't, and how to work it out.
What Counts as “Cash” for Zakat
- Cash in hand — at home, in your wallet, anywhere.
- Bank accounts — current, savings and fixed deposits (the halal balance).
- Foreign currency — converted at the market rate on your Zakat date.
- Mobile wallets — Easypaisa, JazzCash, PayPal balances and similar.
- Committee / BC contributions — instalments you have paid in and will receive back.
- Strong loans — money lent to others that you reasonably expect to recover.
Everything above is combined with your other zakatable assets — gold and silver, business stock and investments — into one total, as shown in our full calculation guide.
Salary: Income vs Savings
Zakat is not an income tax. You do not pay it on each salary as it lands. Instead, whatever has accumulated in your accounts on your Zakat anniversaryis zakatable — including last week's salary. One snapshot, once a year, 2.5%.
Committees (BC) — A Pakistani Special Case
Savings committees are everywhere in Pakistani households. The principle: money you have paid in remains your wealth, because you hold a right to the payout. So if you have contributed PKR 10,000 monthly for 8 months, add PKR 80,000 to your zakatable total. Once you receive the lump sum, it is ordinary cash in your total. Instalments you have not yet paid are simply money you still hold — already counted in your balance.
What You Deduct
Subtract debts and bills due now: rent owed, utilities, credit card balances, borrowed money being repaid, and instalments currently due. Do not deduct the whole of a long-term loan such as a mortgage — only what is currently payable.
Worked Examples
Karachi household
- Cash at home: PKR 50,000 · Bank: PKR 250,000 · Committee paid in: PKR 80,000 · Utility bills due: PKR 30,000
Net = 50,000 + 250,000 + 80,000 − 30,000 = PKR 350,000 → Zakat = PKR 8,750.
UK professional
- Current account: £2,000 · Savings: £9,500 · Money lent to a friend (recoverable): £1,000 · Credit card due: £700
Net = 2,000 + 9,500 + 1,000 − 700 = £11,800 → Zakat = £295.
Interest (Riba) Is Not Yours
If a conventional account has paid you interest, that amount is not lawful wealth. It is not included in your Zakat calculation, and it cannot count as Zakat. Scholars advise giving it away to the poor without expectation of reward, keeping your Zakat separate and pure.
This guide reflects widely held scholarly positions and is not a personal fatwa. For pensions and complex savings products, consult a qualified scholar.