The person who has some wealth and still does not take out zakat for it is regarded as a great sinner in the sight of Allah Ta’ala. He will be severely punished on the day of judgement. Rasulullah sallallahu alayhi wa sallam said: “The person who possesses gold and silver and does not give zakat for it, then on the day of judgement, slabs of fire will be made for him. These slabs will be heated in the fire of jahannam and his sides, forehead and back will be branded with them. When these slabs become cool, they will be re-heated and
the entire process will be repeated.” Rasulullah sallallahu alayhi wa sallam said: “The person who has been given wealth by Allah Ta’ala and despite this does not give zakat for it, then on the day of judgement this wealth of his will be turned into a huge poisonous snake which will encircle his neck. It will then tear the sides of his mouth apart and tell him: ‘I am your wealth and I am your treasures.'” We seek refuge in Allah Ta’ala. Who can bear such severe punishment? It is the height of foolishness and stupidity that we are prepared to pay such a great penalty for a little greed and selfishness on our part. It is extremely foolish and improper to refuse to spend in the path of Allah the wealth that Allah Himself has granted to us.
If a person possesses 612.35 grams of silver or 87.479 grams of gold or any currency that equals the value of this amount of gold or silver, and this wealth remains in his possession for a complete year, then on the expiry of this year it will be wajib on him to give zakat for it. If his wealth is less than this, zakat will not be wajib. If it is more than this, zakat will still be wajib.
A person possessed the complete nisab for about four to six months. Thereafter, this nisab decreased, and after about three months he acquired some other wealth (and he once again possesses the complete nisab, even in such a case zakat will be wajib on him. In other words, if a person possesses the nisab at the beginning and at the end of the year, zakat will be wajib on him. By the nisab decreasing during the course of the year, one is not absolved of giving zakat.
However, if his entire wealth is lost and he finds it later, then the beginning of the year will be calculated from the time that he finds his wealth. (The period prior to that will not be calculated).
A person possessed the nisab but prior to the expiry of one year all his wealth is lost and it was not in his possession for the complete year. In such a case zakat will not be wajib.
A person possesses the full nisab and also has debts which equal the nisab. In such a case zakat will not be wajib.
If his debts are such that if he were to fulfil his debts he will have a remainder of wealth which will equal the nisab, then zakat will be wajib on him.