Question Summary:
Kindly calculate Zakaat for following: Cash on hand R20000. Car financing bal.R25000. Monthly car installment R1450.

Question Detail:

Kindly calculate Zakaat for following:
Cash on hand R20000. Car financing bal.R25000. Monthly car installment R1450. Shukran.

Answer :

Answer:
In the Name of Allah, the Most Gracious, the Most Merciful.
As-salāmu ‘alaykum wa-rahmatullāhi wa-barakātuh.
In principle, if one does not possess the Nisaab (quantum) of Zakaat or one’s liabilities exceed one’s assets, then one is not obligated to pay Zakaat.
With regards to your question:
If you have only R20.000 and other Zakatable assets, then you are not obligated to pay Zakaat since your liabilities exceed your total assets.[1]
The above ruling will only apply if Zakaat had not become Wajib before you had taken out a car financing loan.[2]
Kindly refer to the following Zakaat table for more details:
 

Personal Wealth

Amounts:

1.   Amount of Cash and Savings at home or in the bank

R 10,000

2.   Current value of any gold and silver jewelry, coins, utensils etc

R 5,000

3.   Value of  assets and merchandise for trade

R 20,000

4.   Receivables and loaned amounts to others

R 5,000

Total these amounts here:

R 40,000

Amount Debts to be paid:

R 20,000

Subtract the total amount of debts for the year from the above amount.

Nett Total of Zakatable Wealth

R 20,000

if the net total of Zakatable Wealth is more than the Nisab amount then…

Multiply the net total by 2.5% (nett amount x 0.025)

R 500