A common question that arises when calculating Zakat is: how long does Zakatable wealth need to be held in one's possession for Zakat to become compulsory on it.

Simply, Zakat is calculated on an annual basis, based on the possession of Zakatable wealth that is equivalent to or more than the threshold (Nisab) after deducting debts. One will be liable to pay Zakat on Zakatable wealth once the threshold is maintained for the year. If a person becomes completely insolvent in this period, then the cycle will be restarted once Zakatable wealth to the value of the Zakat threshold (Nisab) returns.

Once a person is liable to pay Zakat by virtue of possessing the Zakat threshold, wealth that enters one's possession within the year will fall within the Zakatable wealth. The period within which this comes into one's possession is not considered. What shall be considered is that such wealth came within the Zakatable period, irrespective of which point in the year such wealth came into possession. Thus, if Zakat is compulsory on the person then he should discharge Zakat on 2.5% on all Zakatable wealth on hand, irrespective of whether all this wealth was in his possession for the entire year or portion thereof. To illustrate this further, if Zakatable wealth entered a person's possession just one day before calculation, then too Zakat will be calculated for the full year on the entire amount which technically is in one's possession for a day only. Similarly, if wealth leaves one's possession a few days before the annual Zakat calculation date, then such wealth will not come within one's Zakat calculation, although one may have held it in possession for the major part of the year.

In essence Zakat is calculated from date to date and its annual maturity is not dependent on holding it for the entire duration of the year. Zakat calculation can be complicated and therefore it is advisable to consult with an Alim.