Calculating Nisab

http://www.central-mosque.com/index.php/Acts-of-Worship/detailed-account-of-zakah.html

The person who has some wealth and still does not take out Zakah 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 Zakah 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 Zakah 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.

1. 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 Zakah for it. If his wealth is less than this, Zakah will not be wajib. If it is more than this, Zakah will still be wajib.
2. A person possessed the complete nisaab for about four to six months. Thereafter, this nisaab decreased, and after about three months he acquired some other wealth (and he once again possesses the complete nisaab, even in such a case Zakah will be wajib on him. In other words, if a person possesses the nisaab at the beginning and at the end of the year, Zakah will be wajib on him. By the nisaab decreasing during the course of the year, one is not absolved of giving one's Zakah. 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).
3. A person possessed the nisaab 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 Zakah will not be wajib.
4. A person possesses the full nisaab and also has debts which equal the nisaab. In such a case Zakah will not be wajib.
5. If his debts are such that if he were to fulfil his debts he will have a remainder of wealth which will equal the nisaab, then Zakah will be wajib on him.
6. Zakah is wajib on jewellery, utensils, ornaments, and brocades that have been made with gold or silver. This is irrespective of whether these items are in use or not. In other words, Zakah is wajib on everything that is made of gold or silver. However, if they are less than the nisaab, Zakah will not be wajib.
7. If the gold or silver is not pure but has been mixed with another metal, then one will have to check as to which is more in content. If the gold or silver is more, then the rules which are applicable to both will apply here as well. That is, if they equal the nisaab, Zakah will be wajib. If the content of the other metal is more than that of the gold or silver, it will not be regarded as gold or silver. The rules that apply to brass, copper, steel, tin, etc. will also apply to this metal. These rules will be discussed later.
8. A person does not have the complete nisaab of gold nor of silver. Instead, he has a bit of gold and a bit of silver. If both are added together and their value equals the nisaab of gold or silver, Zakah will be wajib. But if they do not equal the nisaab of either gold or silver after adding them together, Zakah will not be wajib. If the nisaab of gold or silver is complete, there is no need to obtain their value.
9. Assuming that the price of 11.664 grams of gold is R25, and for R1 we can get 17.496 grams of silver and a person possesses double this amount of gold (i.e. 23.328 grams) plus R5 both of which is over and above his needs. Furthermore, he has this gold and cash in his possession for a full year. In such a case, Zakah will be wajib. This is because the 23.328 grams of gold equals R50, and for R50 one can purchase 874.8 grams of silver (50x17.496g). In addition to this, if the R5 were to be added together, this will result in a lot of wealth upon which Zakah will be wajib. However, if he only possesses the 23.328 grams of gold and does not have any cash or silver; Zakah will not be wajib.
10. Assuming that we get 23.328 grams of silver for R1 and a person only possesses R30. Zakah will not be wajib and we will not calculate and say that R30 equals 699.84 grams of silver (i.e. 30 x 23.328 = 699.84) based on the fact that the rand is actually in place of the silver and when we only have gold or silver, then we will take the weight into consideration and not the value. (This rule will only apply when the coins used to be made of silver. These days, coins are made of copper and other cheap metals. We even receive them in return for currency notes. Now the ruling will be that the person who possesses coins or notes equal to the current value of the nisaab of gold or silver, Zakah on this will be wajib.)
11. A person had money equal to the nisaab which was over and above his needs. Prior to the expiry of the year, he received an additional amount. This additional amount will not be calculated separately. Instead, it will be added to the original amount and upon the expiry of the year, Zakah will be wajib on the entire amount and it will be regarded as if the original amount and the additional amount was in his possession for one full year.
12. A person had silver which was equal to the nisaab. Prior to the expiry of the year, he received an amount of gold (whether more or less than the amount of nisaab). This amount will not be calculated separately. Instead, it will be added to the original amount of silver and Zakah will be wajib on the total amount upon the expiry of that year.
13. With the exception of gold and silver, the rule regarding all other metals such as steel, copper, brass, etc., the utensils that are made of these metals, clothing, footwear, and all other such items is that if these items are for the purpose of trade, Zakah will be wajib on them if they reach the nisaab of either gold or silver and are in the possession of the person for a period of one year. However, if these items do not reach the nisaab, Zakah will not be wajib. If these items are not for the purpose of trade, Zakah will not be wajib irrespective of the amount one possesses. Even if the value of these items reaches thousands of rands, Zakah will not be wajib as long as they are not for the purpose of trade.
14. Zakah is not wajib on household effects such as utensils, pots, big pots, trays, basins, crockery and glassware, the house in which one lives, the clothes which one wears, jewellery made of pearls, etc. This is irrespective of the amount and irrespective of whether they are being used daily or not. However, if they are kept for the purpose of trade, Zakah will be wajib on them as well. In short, Zakah is not wajib on all items apart from gold and silver if they are not for the purpose of trade. But if they are for trade, Zakah will be wajib on them as well.
15. A person owns several homes from which he collects rent. Zakah is not wajib on these homes irrespective of their value. Similarly, if a person purchases some utensils and hires them out, Zakah will not be wajib on these utensils. In short, by hiring or renting something out, Zakah does not become wajib on that thing.
16. Zakah is not wajib on clothes irrespective of how expensive they may be. However, if they are embroidered with gold or silver thread and if this thread were to be removed and weighed it will be equal to the nisaab, then in such a case Zakah will be wajib. But if it does not reach the nisaab, Zakah will not be wajib.
17. A person possesses some gold or silver, and some goods for trade as well. All these will have to be calculated together. If they reach the nisaab of either gold or silver, Zakah will be wajib. If they do not reach the nisaab, Zakah will not be wajib.
18. Goods for trade will only be regarded as such if they have been purchased with the intention of re-sale. If a person purchases some rice or any other item for his domestic needs or for a wedding, etc. and thereafter decides to sell this item, Zakah will not be wajib on this.
19. Zakah is also wajib on the money that is owed to a person by his debtors. Debts are of three types:
    1. The First Type: The person loaned some gold, silver or money, or sold some tradeable goods to another person. He is owing this money and only repays his debt after a year or two. If whatever he loaned is equal to or more than the nisaab, Zakah will be wajib for all the years that he had loaned the money.
       1. He did not repay the debt at once, but in instalments. The moment he pays an amount equal to the value of 128.304 grams of silver, Zakah will become wajib on him. But if the person repays the value of 128.304 grams of silver in instalments as well, Zakah will only become wajib on the completion of this amount. Each time that this amount is paid, Zakah on it will have to be given. Whenever the person gives the Zakah, he will also have to pay for all the previous years in which the Zakah was not paid.
       2. If the money owed is less than the nisaab, Zakah will not be wajib on the person. However, if the person has some other wealth upon which Zakah is necessary, then this wealth should be added to the money owed. If, after adding them together, they equal the nisaab, Zakah will be wajib on the total amount.
    2. The Second Type: A person did not loan any cash nor did he give (on credit) any goods for trade. Instead, he sold something which was not originally purchased for re-sale, eg. he sold some of his personal clothing or some household goods, and the person is still owing him the money for these items. In addition to this, the amount that he is owing is equal to or more than the nisaab and he only repays this amount after several years. Zakah will be wajib for all the years. If he does not repay this debt at once, but repays it in instalments, then as long as the paid up instalments do not reach the current nisaab of silver or gold, Zakah will not be wajib on the amount that he collected. The moment an instalment reaches the current nisaab, Zakah becomes wajib for all the years in which Zakah was not paid.
    3. The Third Type: The husband owes his wife the mahr (dowry) which had been stipulated at the time of marriage. He only pays this mahr after several years. Zakah will only be calculated from the day that she actually receives her mahr. Zakah for the previous years will not be wajib. If the mahr remains with her for a period of one year after having received it, Zakah will become wajib on her upon the expiry of one year. But if she does not have the mahr (for example, if she spends it), Zakah will not be wajib.
20. A rich person upon whom Zakah is wajib gives his Zakah before the expiry of one year and does not wait until the end of the year. This is permissible and his Zakah will be considered to be fulfilled. But if the person is not rich and envisaged receiving some money in the near future, and therefore gave his Zakah before the expiry of the year, this Zakah of his will not be considered to be fulfilled. When he receives the money and thereafter a year passes, he will have to give his Zakah again.
21. It is permissible for a rich person to give Zakah for several years beforehand. But if his wealth increases in any given year, he will have to give Zakah for the extra wealth that he obtained.
22. A person has R1000 over and above his basic needs. He also envisages receiving another R1000 from somewhere. Before the expiry of the year, he gives Zakah for the total R2000. This is also permissible. However, if his money gets less than the nisaab at the end of that year, then Zakah will not be wajib on him and the Zakah which he had already given will be regarded as a voluntary charity (sadaqah-e-naafilah).
23. A person had some wealth for a full year but before he could give the Zakah, all his wealth was stolen or disappeared in some other way. He will be absolved from giving Zakah. But if the person gives his wealth away or causes it to be destroyed in some way or the other, then he will not be absolved from giving the Zakah. It will remain wajib upon him.
24. After the expiry of the year, a person gave all his wealth in charity. Zakah will not be wajib on him.
25. A person had R2000. After the expiry of one year, R1000 was stolen or he gave it in charity. He will be absolved from giving the Zakah of R1000. He will now only have to give Zakah for R1000.

http://www.askimam.org/public/question_detail/15954

In the name of Allah, Most Gracious, Most Merciful 

Assalaamu `alaykum waRahmatullahi Wabarakatoh 

Zakat is due upon a person when he becomes the owner of a specific amount (nisab) of wealth after deducting debts and a year has elapsed on that wealth.  The nisab of zakat for gold is 7.5 tolas (87.48 g) and for silver it is 52.5 tolas (612.35 g).

When calculating zakat, the weight of gold and silver will be taken into consideration and not the value.  If a person has gold equivalent to and above the amount of nisab, then 2.5% of gold will be given in zakat.  If he wishes to give the actual gold in zakat, then the weight will be taken into consideration.  If he wishes to discharge the zakat in cash then the value of the gold will be taken into consideration.  For example if a person has 50 tolas of gold, 1.25 tolas of gold will be due upon him.  He may either give 1.25 tola of gold or the value 1.25 tolas of gold.

The same ruling will apply for zakat of silver.  If a person has silver equivalent to and above the amount of nisab, then 2.5% of silver will be given in zakat.  If he wishes to give the actual silver in zakat, then the weight will be taken into consideration.  If he wishes to discharge the zakat in cash then the amount of silver will be taken into consideration.

If a person has a small amount of gold which does not reach the nisab and he owns no silver or cash, then zakat is not due upon the gold.  Similarly, if a person has a small amount of silver which does not reach to the nisab and he owns no gold or cash, then zakat is not due upon the silver. 

If a person has a small amount of gold and with it he has cash or silver, the gold will be joined with the cash and silver.  If it reaches to the nisab of silver, zakat will be due.  For example a person has 2 tolas gold and 50 tola silver. If we were to assume that the price of 2 tolas gold can purchase 20 tolas silver, then you will add 20 tolas to the 50 tolas silver and calculate zakat of 70 tolas silver.  

Fatawa Mehmoodia (9/380) Jamia Farooqia
Al-Durr al-Mukhtar (2/303) H.M. Saeed Company

( و ) يضم ( الذهب إلى الفضة ) وعكسه بجامع الثمنية ( قيمة ) وقالا بالإجزاء ، فلو له مائة درهم وعشرة دنانير قيمتها مائة وأربعون تجب ستة عنده وخمسة عندهما فافهم (الدر المختار)

If one had the complete nisab of gold and complete nisab of silver then it is better to give the zakat of each one separately.  If one wishes to combine the two, then that nisab which is more benefiting to the poor will be taken into consideration.

Cash will be calculated according the nisab of silver.  If a person has cash which can purchase him 52.5 tolas (612.35 g) or more, then zakat will be due upon him.  

Fiqhi Muqalat of Mufti Taqi Usmani (1/31) Memon Islamic Publishers
Badai’al-Sanai’ (2/103) Dar al-Kitab Deoband
Al-Fatawa al-Hindiyya (1/179) Maktaba Rashidiyya

- وأما الفلوس فلا زكاة فيها إذا لم تكن للتجارة وإن كانت للتجارة فإن بلغت مائتين وجبت الزكاة كذا في المحيط (الفتاوى الهندية)

-  فإن كانت أثمانا رائجة أو كان يمسكها للتجارة يعتبر قيمتها فإن بلغت قيمتها مائتي درهم من أدنى الدراهم التي تجب فيها الزكاة وهي التي الغالب عليها الفضة تجب فيها الزكاة وإلا فلا (بدائع الصنائع)

The difference between the value of gold nisab and value of silver nisab is not due to Shariah, but do the current economic variations.  The value of gold has gone higher over the years.  As stated above, in reality the weight of gold is taken into consideration and not the value.

2.

The jewelry that a woman owns is her wealth and not the wealth of her husband.  If a person is poor and eligible to receive zakat then you may give zakat to him.  The wife owning jewelry does not making it unlawful for the husband to receive zakat.

3.

It is impermissible to give zakat to people who are from the Progeny of the following:

-         Fatima (Radhiyallahu Anha)

-         Ali (Radhiyallahu Anhu)

-         Abbas (Radhiyallahu Anhu)

-         Ja’far (Radhiyallahu Anhu)

-         Aqeel (Radhiyallahu Anhu)

-         Harith ibn Abdul Muttalib (Radhiyallahu Anhu)

Similarly it is impermissible to give other charities which are wajib, e.g. nadhr, kaffara, sadaqat al-fitr.  Charities besides these may be given to them.


http://www.askimam.org/public/question_detail/16927

In the name of Allah, Most Gracious, Most Merciful 

Assalaamu `alaykum waRahmatullahi Wabarakatuh 

1. The Nisab of gold and silver is 20 mithqals and 200 dirhams respectively. The Nisab of gold became 87.48 grams and silver became 612.35 grams. The weights and conversions mentioned on our website are in accordance to that which is recorded in the books of the Ulamaa.

(Al-Hidaya, vol 1, pg 174, Rashidiyya / Al-Bahr al-Raiq, vol 2, pg 225, Rashidiyya / Fatawaa Al-Mahmudiyya, vol 9, pg 378, Faruqiyya)

2. In order for an item to be classified as a gold or silver item, it is necessary that it contain more than 50% of gold or silver. If it contains less than 50% of gold or silver, it will not be considered as a gold or silver item.

Items that are 18ct, 22ct and 24ct gold would be considered as gold, since they contain more than 50% of gold. However, 9ct is not considered as gold because it contains only 37.44% of gold.

If your item is classified as gold or silver and its weight reaches the Nisab amount (gold: 87.48 g / silver: 612.35 g), then you will have to give zakaat on them.  

(Al-Hidaya, vol 1, pg 174, Rashidiyya)

http://www.askimam.org/public/question_detail/16800

In the name of Allah, Most Gracious, Most Merciful 

Assalaamu `alaykum waRahmatullahi Wabarakatuh 

Zakat is compulsory on a Sahib Al-Nisab. A Sahib Al-Nisab is one who possesses the Nisab of Zakat (a required amount of money or assets that qualifies a person liable of discharging Zakat). At present in () the Nisab of Zakat is approximately (R.3311.25). Therefore the person who possesses this amount of cash/assets for a complete year, will give two and a half percent of its total in Zakat.

The standard Nisab of Zakat is Two Hundred Dirhams (silver coins) equivalent to 612.35 grams of silver or Twenty Mithqals of Gold equivalent to 87.479 grams of gold or any currency that equals the value of this amount of gold and silver. If this amount of wealth remains in a person’s possession for a complete year, then on the expiry of this year it will be Wajib on him to give Zakat of two and a half percent of the total. If his wealth is lesser than 612.35 grams of silver or 87.479 grams of gold or its equivalent amount in currency then Zakat will not be Wajib on him. (Baheshti Zewar, Vol. 1 Pg. 297, Zam Zam)

Zakat is compulsory on cash, assets etc. which are in a person’s possession for an entire year. However, if perchance a person has liabilities on his cash etc. which if calculated will not qualify him as a Sahib Al-Nisab, then in such a case he will not be liable of discharging Zakat.

And Allah knows best

Wassalam 

Ml. Safraz Mohammed,
Student Darul Iftaa

Checked and Approved by:

Mufti Ebrahim Desai
Darul Iftaa, Madrassah In'aamiyyah

http://www.askimam.org/public/question_detail/19019

In the name of Allāh, Most Gracious, Most Merciful 

Assalāmu ῾alaykum wa Rahmatullāhi Wabarakātuh 

You will only have to give zakah on gold if:

1. it is equal or more than the nisab of gold (i.e 87.479 grams) or if it is equal or more than the nisab of silver (i.e 612.35 grams). In other words, lesser of the two nisabs.
2. and you have it in your possession for one Islamic year.¹

However, if you have assets on which the zakah is due, then no matter how much gold you have, you will have to add it to the rest of assets and calculate zakah on total amount.

 (Ahsanul Fatwa, Vol.4, Pg.264, HM Saīd)¹

(Bahishti Zewar, Pg.240, Makki Darul Kutub)

And Allāh Ta῾āla Knows Best 
Wassalāmu ῾alaykum 

Ml. Abduz Zaman,
Student Dārul Iftā

http://www.askimam.org/public/question_detail/17114

Can you guide me about Zakat? I mean we have to pay Zakat after completion of one year. What are the assets on which we have t o pay Zakat? What is basic rule for the payment of Zakat?

Answer

In the name of Allah, Most Gracious, Most Merciful 

Assalaamu `alaykum waRahmatullahi Wabarakatoh 

Allah Ta‘ālā states in the Holy Quran,

وَأَقِيمُوا الصَّلَاةَ وَآَتُوا الزَّكَاةَ وَمَا تُقَدِّمُوا لِأَنْفُسِكُمْ مِنْ خَيْرٍ تَجِدُوهُ عِنْدَ اللَّهِ إِنَّ اللَّهَ بِمَا تَعْمَلُونَ بَصِيرٌ

“And establish Salāh and pay Zakāh; whatever good you send forth for yourselves, you will find it with Allah. Certainly, Allah is watchful of what you do.”

Zakāh has two denotations in Arabic, namely growth and purification. Zakāh is paid as a means of purifying one’s wealth and fulfilling the obligation will be a means of increase and growth in the remainder of one’s wealth. 

Calculating Zakah:

Zakāh will become compulsory on a sane and mature Muslim when his / her wealth exceeds the Nisāb and this amount of wealth is maintained for the duration of one entire lunar year. The Nisāb is 20 Mithqals (87.479 g) for gold and 200 Dirhams (612.35 g) for silver. Any currency equal to the amount of any of these Nisābs will also render Zakāh binding. For example, if the price of silver is quoted at R4.40 per gram then the Nisāb will equal approximately R2, 702. If one’s wealth decreases below the Nisāb during the year but before the expiry of the year, it reaches the Nisāb, Zakāh will be binding contrary to the case of the wealth not rebounding to amount of Nisāb upon the expiry of the year. However, if one loses his entire wealth, a new lunar cycle will begin after reaching the Nisāb for the second time. All debts and liabilities will be deducted from his wealth before calculating his estate. Only that particular year’s liabilities will be deducted from long-term debts such as car / home financing. Loans given and other receivables into one’s estate will be accounted for even if the person is not paid by his debtor for several years. Any gold or silver items such as jewelry, ornaments etc will also form part of Zakatable assets. If the percentage of gold or silver in the item is more than the metal alloy with which it is amalgamated the entire item will be considered as gold or silver. If the percentage of alloy is greater, if there is enough gold or silver where it is possible for it to be extracted, then Zakāh will be compulsory only on the value of the gold or silver therein and not on the entire item if the Nisāb is reached.  Similarly, any items purchased for trade will be subject to Zakāh and must be accounted for in the calculation. A person should add his / her cash savings, values of gold and/or silver, value of the merchandise of trade and any receivables from debts etc. Thereafter, he / she should deduct the amount of debts owed to others. If the value of the net total equals the Nisāb of gold or silver, he / she will have to pay 2.5% of the amount in Zakāh. Hereunder is a brief chart illustrating the calculation of Zakāh: 

Personal Wealth	Amounts:
1.   Amount of Cash and Savings at home or in the bank	R 10,000
2.   Current value of any gold and silver jewelry, coins, utensils etc	R 5,000
3.   Value of   assets and merchandise for trade	R 20,000
4.   Receivables and loaned amounts to others	R 5,000
Total these amounts here:	R 40,000
Amount Debts to be paid:	R 20,000
Subtract the total amount of debts for the year from the above amount.
Nett Total of Zakatable Wealth	R 20,000
if the net total of Zakatable Wealth is more than the Nisab amount then…
Multiply the nett total by 2.5% (nett amount x 0.025)	R 500

And Allah knows best

Wassalam 

Ml. Yusuf bin Yaqub,
Student Darul Iftaa

Concurred by:

Ml. Ehzaz Ajmeri, 
Student Darul Iftaa

Darul Iftaa, Madrassah In'aamiyyah

http://www.askimam.org/public/question_detail/24990

I divorced recently.  Now im staying with my parents.All my things ( clothes, jewellery, household materials, etc.,) are still with my ex-husband and his family. Due to some legal reasons we did not take all those things from their house. We never asked them to return nor did they tell us to take back all those. i have nearly 70 gms of gold ornaments( 25 gms from my parents side, 15 gms from in laws side and rest which i got as gifts).

My question is that all ( nearly 70gms of gold) that jewellery is with my ex husbands family.im not using that and its not with me.so, am i eligible for zakat even on that jewellery which is not with me?

Answer

In the Name of Allah, the Most Gracious, the Most Merciful.

As-salāmu ‘alaykum wa-rahmatullāhi wa-barakātuh.

If you are the rightful owner of the gold ornaments, then all the responsibilities of the ownership of the gold ornaments will be directed to you.

Not having physical ownership of the gold ornaments does not absolve you from the Shar’ee responsibility of the gold ornaments.

Accordingly, you will have to calculate Zakaat on the gold ornaments by your in-laws as per your personal situation. [1]

The Nisaab of Zakaat for gold is 20 Mithqals or 87.479 grams. The Nisaab of silver is 200 Dirhams or 612.36 grams.[2]

You state that you have 70 grams of gold. If you do possess other pieces of gold jewellery, you should add these to the 70 grams of gold and calculate whether the full amount is equivalent or lesser than the Nisaab amount. If the total amount of gold is equal or more than the Nisaab amount, one will be obligated to pay Zakaat on the gold. [3]

If you posses silver, you should join the silver to the gold and if the value of them combined reaches the Nisaab of either gold or silver, then Zakaat is obligatory.[4]

For example, if one had 500 grams of silver throughout the year and then acquires 75 grams of gold during the year, then the value of the gold must be calculated and combined with the silver in order to determine whether this combined value reaches the Nisaab. 

In principle, if the percentage of gold in the ornaments is more than the alloy, then the entire ornaments will be considered as Zakaatable.[5] The total value of the gold ornaments will then be added to your Zakaatable assets when calculating Zakaat[6]. However, if the total amount of gold in the ornaments do not exceed the amount of alloy, then the entire ornament would not be Zakatable. Rather, the value of the actual gold will be added to the total Zakatable assets when calculating Zakaat. 

Kindly refer to the following table for more details on calculating Zakaat:

Personal Wealth	Amounts:
1.   Amount of Cash and Savings at home or in the bank	R 10,000
2.   Current value of any gold and silver jewelry, coins, utensils etc	R 5,000
3.   Value of  assets and merchandise for trade	R 20,000
4.   Receivables and loaned amounts to others	R 5,000
Total these amounts here:	R 40,000
Amount Debts to be paid:	R 20,000
Subtract the total amount of debts for the year from the above amount.
Nett Total of Zakatable Wealth	R 20,000
if the net total of Zakatable Wealth is more than the Nisab amount then…
Multiply the nett total by 2.5% (nett amount x 0.025)	R 500

And Allah Ta’āla Knows Best                                            

Ismail Desai,
Student Darul Iftaa
Durban, South Africa

Checked and Approved by,
Mufti Ebrahim Desai.

I live in USA and a car is a necessity for each person here.  My husband and I each have a car for work and family as well.  But we also have a sports car (luxury car) which we just use in the summer for 2 to 3 months for the rest of the year it snows.  We don’t use that car at all and it simply stays in the garage.  So is there zakat due on that car?

Answer:

In the Name of Allah, the Most Gracious, the Most Merciful.

As-salāmu ‘alaykum wa-rahmatullāhi wa-barakātuh.

Zakāt is given on the following:

1)     Gold and Silver

2)     Cash

3)     Merchandise

4)     Agricultural produce

5)     Livestock

Any personal belonging for personal use such as a house, car, refrigerator and the like are not subject to zakāt.  Even if it is surplus to requirements, zakāt is not due on such an item.  Thus, there is no zakāt due on the sports car in reference.[i]

And Allah Ta’āla Knows Best

Mawlana Faraz ibn Adam,www.darulfiqh.com

Question:

I am married since November 19 2006 (27 Shawwal 1427).  I received a Kruger coin as mahr but I havent paid Zakaat on it ever since.  May Allah forgive me! I need your help in calculating my Zakaat.

Answer:

The Kruger rand is a 22ct gold coin and will be treated as any other gold and silver item one possesses. [1]

The value of the Kruger rand should be added to your total value of zakaatable assets.  2.5% of the total should be discharged exactly one lunar after possessing the threshold (nisaab) which makes you eligible to pay Zakaat.[2]

For example, the first time you ever became the owner of money equal to the nisab or more was on the 17th of Ramadhan, then your ‘Zakaat day’ is the 17th of Ramadhan i.e. you will calculate your Zakaat based on the goods, money, gold and silver that are in your possession on the 17th of Ramadan every year.  You will give 2.5% of the total.

How to pay Zakaat on the Kruger coin for the previous years:

1)     Ascertain the value of the Kruger coin on your respective Zakaat date of the previous years.  This can be done by searching online or asking a goldsmith.

2)      Add the value of the Kruger coin to the assets value of that year.

Value of assets in 1428 + Kruger coin = real total value of assets of 1428

3)     Just give the difference between what you gave and what you should have given if you had added the Kruger coin amount.

For example, your Zakaat date was 15 Zul-Qa’dah 1427.  Your assets totalled up to 10,000 Rand and the Zakaat nisaab was 4,000 Rand. In addition, you were not liable to pay off any debt.  Hence, you were obliged to pay Zakaat.  2.5% of 10,000 equals 250 Rand.  So Zakaat of your assets was 250 Rand on the 15th of Zul-Qa’dah 1427.

The value of the Kruger coin on the 15th of Zul-Qa’dah 1427 was 2,000 Rand.  After adding this amount to the assets value, the total is 12,000 Rand.  2.5% of this is 300 Rand.  See the difference between what you gave and what you  should have given.  You gave 250 Rand; you should have given 300 Rand.  So the difference between the two amounts is 50 Rand.  So the outstanding Zakaat for the Kruger coin for in the year 1427 was 50 Rand.  Zakaat on behalf of the Kruger coin for that year will be dispensed by paying this amount.

By following the above method for each year since 2006/1427, you will eventually pay off the Zakaat which was due each year on the Kruger coin.

Hereunder is a brief chart illustrating the calculation of Zakāh: 

Personal Wealth	Amounts:
1.   Amount of Cash and Savings at home or in the bank	R 10,000
2.   Current value of any gold and silver jewelry, coins, utensils etc	R 5,000
3.   Value of  assets and merchandise for trade	R 20,000
4.   Receivables and loaned amounts to others	R 5,000
Total these amounts here:	R 40,000
Amount Debts to be paid:	R 20,000
Subtract the total amount of debts for the year from the above amount.
Nett Total of Zakatable Wealth	R 20,000
if the net total of Zakatable Wealth is more than the Nisab amount then…
Multiply the nett total by 2.5% (nett amount x 0.025)	R 500

Follow this chart in future to help you dispense of Zakaat.

And Allah Ta’āla Knows Best

Mawlana Faraz Ibn Adam
Student of the Darul Iftaa

Checked and Approved by,

Mufti Ebrahim Desai.

Zakat on Saved Money 

Question #: 4911 

Date Posted: 06-01-2005 

<QUESTION>

I am a student who is taking a year off to work and save money so that I can continue my studies the following year without taking any loans. I wanted to know if the money I made while working on this time off was subject to zakat.

<ANSWER>

In the name of Allah, Most Compassionate, Most Merciful,

When one’s appointed date of Zakat arrives, one has to pay Zakat on all of one’s Zakat-able assets, regardless of what purpose one saved and put aside the wealth.

Imam al-Haskafi (Allah have mercy on him) states:

“The reason for the obligation of paying Zakat is the address of Allah Most High “Pay Zakat”. The condition for this obligation (of paying zakat) is the passing of one year with the wealth remaining in one’s possession, and the wealth being a medium of exchange (thamaniyya) such as dirhams and dinars as they are specified for trade in their original creation, hence Zakat is obligatory (on dinar, dirham, gold, silver and cash in general) regardless of why they were held onto, even if one held onto money for the purpose of financial support.” (See: Radd al-Muhtar ala al-Durr al-Mukhtar, 2/267)

In light of the above text from one of the foremost works in the Hanafi School, it becomes clear that one has to pay Zakat on wealth even if that wealth and money was saved and gathered for a specific reason, such as marriage, study or some other reason. The only condition is the passing of one lunar year.

Thus in conclusion, the money you saved in order for you to continue your studies next year is also subject to Zakat. However, if you spend this money before the passing of one year, you will not have to pay Zakat on it.

And Allah knows best

[Mufti] Muhammad ibn Adam
Darul Iftaa
Leicester , UK
Answer:

wa`alaykum as-salam

All praise is to Allah. Blessings and peace upon the Messenger of Allah.

May Allah reward you for your concern about His religion.
Please forgive me for the delay in replying. I was overseas and recently returned.
Answers to your questions are below.

1) Zakat is payable on gold and silver jewelry, even if it is not for business purposes, provided it reaches the quantity of nisab and has been possessed for one lunar year or more.
It is reported that a woman came to the Prophet (may Allah bless him and his Household and grant them peace) with a daughter of hers. On the daughter’s arm were two thick bracelets of gold. He asked her, “Do you give the zakat of this?” She said, “No.” He said, “Would it please you for Allah to put them around you as bracelets of fire on the Day of Resurrection?” Thereupon, she removed them and threw them before the Prophet (may Allah bless him and his Household and grant them peace), saying, “They are for [the cause of] Allah and His messenger.”
[Narrated by Abu Dawud, Tirmidhi, Nasa’i, Ahmad and others.
Hafiz Ibn Hajar said, in Bulugh al-Maram, “Its isnad is strong.”]
`A’ishah (may Allah be pleased with her), the wife of the Prophet (may Allah bless him and his Household and grant them peace), says, “The Messenger of Allah (may Allah bless him and his Household and grant them peace) entered upon me and saw bands ( i.e. rings without any stones) of silver on [the fingers of] my hand. He said, “What is this, O `A’ishah?!” I replied, “I put them on to make myself beautiful for you, O Messenger of Allah!” He said, “Do you pay their zakat?” I said, “No.” He said, “They are sufficient for you [as a share] of the Fire [of Hell].”
[Narrated by Abu Dawud]

2) The nisab for gold is approximately 87g. According to your data, the quantity of your wife’s jewelry is more than this. Therefore zakat is considered to be due on it. There is no harm in overpaying the zakat, so if your estimate is a “safe estimate” ( i.e. definitely not less than the value of the gold) then you can use this figure, and you do not need to weigh it exactly.

3) Yes, the zakat on your wife’s jewelry is payable by her. If she does not have enough money to pay the zakat, then either she could sell some of the jewelry, or you could give her enough money to enable her to pay the zakat.

4) To calculate the amount of zakat due on gold jewelry, proceed as follows:
i) Determine the weight of the gold (Note that if the jewelry is not pure gold, then you will need to make a proportionate adjustment for the weight).
ii) Find out the current price of gold (you can find this on the internet, from sites such as http://kitco.com/market/us_charts.html (in US Dollars) or http://kitco.com/market/bp_charts.html (in British Pounds).
iii) Calculate the price of the gold you have.
iv) The zakat due is 2.5% of this (i.e. one-fortieth)

Example:
i) Weight of gold jewelry is 1110 grams.
Divide by 31.13 to convert to troy ounces (or use an online conversion utility, such as http://www.metric-conversions.org/weight/grams-to-troy-ounces.htm . Or to convert directly from tolas to troy ounces, multiply the number of tolas by 0.375).
=> Weight of jewelry is approximately 35.7 troy ounces.
ii) Current price of gold is approximately US$ 360 per troy ounce
iii) Therefore, value of the gold jewelry is approximately $12852
iv) Zakat due is therefore 12852/40 = $321.30

5) If you have never possessed the amount of nisab, then zakat is not due upon you. (According to the Hanafi school, the nisab for money is (nowadays) calculated on the basis of silver, and according to current silver prices, the nisab is approximately US$191.) What is of consideration, in determining whether you must pay zakat, is whether or not you possess the nisab in excess of your basic needs and debts. It is irrelevant, for this purpose, whether you are working part-time, working full-time, studying, etc.

6) If you are in debt, then you can subtract the amount of your debt from your zakatable total. (Your zakatable total is the combined value of all your current cash, gold, silver, investments, trade goods, produce and free-grazing livestock.) Note that if you have enough cash to pay off your debt, then you should do so before starting the zakat calculations.

7) No zakat is due on items of personal use, such as your car and your computer.

And Allah knows best.