What is meant by ‘basic needs’?
Food for oneself and the members of the family, a house for residence, vehicles, clothes, the articles of the house or office, the tools and implements of work are all included in basic needs. If money for the above is present and 1 year hasn’t passed on it, then that money will not be included in the calculation of Zakaat, as the basic needs are dependent on them. If any amount is included in calculation of Zakaat which is already involved in something else, then it will cause difficulties. However, if that amount has been in saving for 1 whole year, then Zakaat is compulsory on it.
As mentioned in Al Bahr Ur Raaiq, Vol. 1, Pg. No. 361.