I have one hundred thousand riyals, and after four months of owning them, I earned twenty thousand. How do I pay zakah? And when is the period calculated?

The Shaykh : Umm Sulayman says: I have one hundred thousand riyals. Two months after I owned them, I invested fifty thousand riyals. After four months, I earned twenty thousand riyals. My question is: How do I pay zakah on this amount after one year? When is the period calculated? Is the zakah on the one hundred thousand riyals or on one hundred and twenty thousand riyals? The period is calculated from the first day you owned the money, meaning when you owned the one hundred thousand riyals. When the year is completed, you pay zakah on one hundred and twenty thousand riyals. This is because the profit from trade follows the principal in the lunar year, even if we assume that the profit was not obtained until one month before the completion of the lunar year, it still follows the principal. And what follows the principal in the lunar year? The profit from trade.

The questioner : The grazing livestock.

The Shaykh : The offspring of the grazing livestock, yes.