Unlocking the Mysteries: What is Hawl in Islamic Finance and Accounting?

Demystifying Hawl – A Comprehensive Exploration of Its Meaning, Significance, and Practical Implications in Islamic Financial Practices” Hawl refers to the time a person has to have the wealth they pay Zakat for.

What does Hawl refer to?

In the explanations in Zakat, Hawl means a lunar year; thus, the hall (lunar year) is about 354 days long.

If a person hasn’t yet been able to accumulate wealth for a Hawl (lunar year), could they pay Zakat?

Yes, they can pay Zakat. However, they must consider any costs or liabilities when calculating the amount they must pay.

My income dropped below the Nisab over the year. Should I contribute to Zakat?

Yes, but you must speak to a scholar.

I received a substantial amount of money right before my Zakat came due that year. Should I put it into my next Zakat?

Yes, you should add it to your calculations.

If I own a retirement plan and want to contribute Zakat for the money I have in the fund?

It is based on the type of fund. We recommend that you talk to an expert in this area since pension schemes are extremely complex.

Some of us have created a fund to cover any emergencies we may face. Does this count as Zakat?

The mentioned fund could be considered as a Waqf. It is generally accepted that the Waqf is not subject to Zakat. So long as there isn’t any personal ownership or no one receives any benefit from the fund, and based upon the type of fund it is, Zakat could be at all. But, it is best to confirm this with an academic.

Visit the Zakat page or view the following YouTube video series to get answers to frequently asked questions about Zakat.


Categories: PRAYER (Salat), ALMS (Zakat), SAWN (Fasting) HAJJ (Pilgrimage) & DUA (Supplications), Hadith and Tafseer, The Holy Quran, Quran Jaz 1- 114

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