"Whoever acquired wealth, then there is no Zakat on it until the Hawl has passed while it is in his possession."
Hadith Text & Reference
"Whoever acquired wealth, then there is no Zakat on it until the Hawl has passed while it is in his possession."
Source: Jami' at-Tirmidhi, Hadith: 632
Meaning of Hawl
The term "Hawl" refers to the completion of one lunar year (approximately 354 days) from the moment the wealth reaches the Nisab (minimum threshold) and remains in one's possession.
This condition applies to wealth types like gold, silver, cash, and trade goods. Agricultural produce and minerals have different rulings.
Scholarly Commentary
This hadith establishes one of the fundamental conditions for Zakat obligation: the passage of one lunar year over the wealth. This ensures the wealth is considered stable and growing, not merely transient.
If wealth decreases below the Nisab during the year, the Hawl is reset. The year only counts when the wealth is continuously at or above the Nisab threshold.
The phrase "in his possession" emphasizes that the wealth must be under one's full ownership and control throughout the year for Zakat to become obligatory.
Exceptions & Related Rulings
Livestock have their own specific Hawl calculations based on grazing patterns.
For newly acquired wealth that is of the same type as existing wealth, some scholars permit combining them and calculating the Hawl from the older wealth.
Zakat becomes due immediately upon the completion of the Hawl, and it is recommended to discharge it promptly without delay.