[VINPELA]

As-salamu-alaikum brothers and sisters,

I was just wondering if someone could shed light on the following issue that has been on my mind lately.

If there is an old man (post-retirement) and he has savings in an Islamic bank that are invested in a halal manner and he gets some money annually from this which he utilises to pay off bills and to cover his daily expenses, would zakaat be applicable on the principal amount as well?

He does not have any other source of income, no children, no family to support him...but he managed (during his lifetime) to save a sum of money that in old age would allow him to cover his expenses. The profit he gets from his savings is his only source of income. If he were to pay zakat every year on the principal amount saved in the bank, it would keep dwindling, until eventually he has very little left and the profit he would get from this would be negligible. He will then no longer be able to cover his daily expenses and would exhaust his savings and thus becoming needy.

What should he do? No one else is going to pay his bills and since he is old and past retirement age, he cannot work and /or get a job.

Does he he need to pay zakaat only on the profit he gets from his savings or also on the principal amount?

Jazaak Allah Khair.

Wassalam.