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﴿ فَاسْأَلُوا أَهْلَ الذِّكْرِ إِن كُنتُمْ لَا تَعْلَمُونَ ﴾

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What is the ruling on the zakah of prize money, a financial gift, and the monthly salary?

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The Shaykh : The questioner asks: Is it permissible to pay zakah on the following assets? First, the money or the concept of the prize. Yes. Second, the financial gift. The large monthly salary, which is estimated at twenty thousand riyals. And if this is permissible, is the zakah paid when the money is received, or when a lunar year has passed?
As for money that comes from a forbidden source, a person is required to dispose of it by giving it to the one who is entitled to it. For example, if a person takes money as a bribe—meaning someone comes to him to get his needs met by the state, but he does not do so unless money is paid—then this money is forbidden for him, and he must return it to the one from whom he took it, because he took it without right. However, if the money came through a forbidden means but with the consent of its owner, such as if the money came through riba (usury or interest), then he must give this riba money in charity if it is not possible to return it to its owner. He gives it in charity to dispose of it, not to draw near to Allah with it. But if it is possible to return it to its owner, he must return it to its owner, based on the saying of Allah the Exalted:
(278) O you who have believed, fear Allah and give up what remains [due to you] of interest, if you should be believers. (279) And if you do not, then be informed of a war [against you] from Allah and Hisيَا أَيُّهَا الَّذِينَ آمَنُوا اتَّقُوا اللَّهَ وَذَرُوا مَا بَقِيَ مِنَ الرِّبَا إِن كُنتُم مُّؤْمِنِينَ فَإِن لَّمْ تَفْعَلُوا فَأْذَنُوا بِحَرْبٍ مِّنَ اللَّهِ وَرَسُولِهِ
[Al-Baqarah 2:278-279]
But if you repent, you may have your principal - [thus] you do no wrong, nor are you wronged.وَإِن تُبْتُمْ فَلَكُمْ رُءُوسُ أَمْوَالِكُمْ لَا تَظْلِمُونَ وَلَا تُظْلَمُونَ
[Al-Baqarah 2:279]
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As for the money that comes in the form of a financial gift, as the questioner says, this money is looked at: if it is dirhams, gold, or silver, then zakah becomes obligatory on it when a lunar year has passed. But if it is not gold, silver, or silver dirhams, but rather paper money, then there is no zakah on it unless the man who received it prepared it for trade. If he received it and prepared it for trade, he must pay the zakah on trade goods.
Likewise, zakah is obligatory on a large or small monthly salary. However, it is not obligatory until a lunar year has passed over it. If a person pays it out and spends it before the completion of the lunar year, then he owes no zakah on it.
Source دروس وفتاوى المسجد الحرام لعام 1406هـ - 8 — binothaimeen.net (1:05:36)

The Arabic text is a machine transcription of the audio recording.

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