Zakat on Gift, Eidi and Prize Money

Short answer: Gifts, eidi, and prize money are part of your wealth. Zakat is due on them when their total, combined with other savings, reaches the nisab (minimum threshold) and a full lunar year (haul) passes over them. Details: The general obligation of Zakat applies to all wealth that meets the conditions of nisab and haul. Money received as gifts, eidi, or lawful prizes becomes your property and is subject to the same Zakat rules as any other cash savings. You should calculate your total savings at the end of each lunar year; if the total equals or exceeds the value of 85 grams of gold (or equivalent silver/currency), then 2.5% is due as Zakat. The day you receive the gift/prize, it begins its own haul if it becomes part of your savings, but it is easier to use a common annual zakat date for all your wealth. Evidence: 1. Sahih al-Bukhari 1404 (Ibn 'Umar) states that hoarding gold and silver without paying Zakat is condemned, indicating Zakat is due on cash savings. 2. Sahih al-Bukhari 1454 (Anas) details the nisab for gold and silver, establishing the threshold. 3. Sahih al-Bukhari 1403 and 1408 warn of severe punishment for not paying Zakat on wealth. 4. Sahih Muslim 988a and 983 emphasize that Zakat is an obligation on owners of wealth (camels, etc.) by analogy. Disclaimer: This fatwa is based on the evidence provided. For complex situations involving multiple sources of income or irregular gifts, consult a knowledgeable scholar.