Is the beginning of the Zakat year calculated from Muharram 1433 AH when the total wealth and nisab were reached, or from Rajab 1435 AH upon receiving the debt, and what is obligatory to do regarding the future date for disbursing Zakat?

1. The nisab (threshold) for banknotes and trade goods is estimated by what is most beneficial for the poor, either by the nisab of gold or silver.

2. If the cash amount reaches the nisab of silver — which is usually the case — then zakat becomes obligatory on you after the passage of one lunar year from the completion of the nisab. If you do not pay it, it remains a debt upon you.

3. Delaying zakat beyond its due time — which in this case is the month of Muharram — is an error, and it must be paid on time, unless there is a legitimate excuse.

4. Zakat is not obligatory on a debt owed by an insolvent person until it is collected. You then pay zakat for one year, or for all past years, with the latter being more cautious.