What is Zakat?

One of the Five Pillars of Islam, Zakat, is obligatory on any Muslim whose wealth exceeds/enters Nisab. It is the lowest limit of the net worth amount for a Muslim, so he/she can afford to pay Zakat. The threshold is valued equal to 87.48 grams of gold (7.5 tola) or 612.36 g of silver (52.5 tola).

"Establish prayer and pay almstax. Whatever good you send forth for yourselves, you will certainly find its reward with Allah. Surely Allah is All-Seeing of what you do” [2:110].

Our Zakat Calculator below is above to assist you in making your Zakat calculations easier and more convenient.

Zakat (Arabic: زكاة) is mandatory for any Muslim earning over the Nisab limit; it forms one of the Five Pillars of Islam. It is the least amount of net worth that a Muslim must have and pay Zakat. Based on that, the threshold is assessed at 87.48 grams (7.5 tola) of gold or, alternatively, at 612.36 grams (52.5 tola) of silver.

What is Nisab?

Nisab is an Arabic word used to refer to the amount of wealth that a person must possess for Zakat to become obligatory on him. They have to give 2.5% of their total net worth to charity.
While Prophet Muhammad (صلی اللہ علیہ وسلم) set Nisab at 20 Mithqaal (مثقال) of gold or its equivalent weight in silver, 200 dirhams. It is 87.48 gram (7.5 tola) for gold and 612. Q2; it is equivalent to 52.5 tola of silver.

Zakat On Gold

It is important to take note that a person who has only gold, the Nisab, is in accordance with gold (87.48 grams). So, if mixed assets are owned (such as gold 1 or 2 tola and silver 10 tola and so on), then the lower Nisab level (of current value of 612.36 gram silver) will be Nisab, which is used only in the case of owning the total price of the asset less than the sab value.

What are the motives for paying Zakat?

Zakat makes one develop a more sincere relationship with Allah S.W.T. As a compulsory form of charity, it prohibits the starving and eradication of the vulnerable members of society. Zakat is also a benefit to people who don’t need help but perform it and earns them innumerable rewards. It makes one’s wealth clean, removes minor transgressions, and cleanses one’s heart and spirit from greed.

“We also specifically award mercy to those who are God-fearing and give the prescribed Zakat, who believe in Our Signs.”

Zakat is obligatory upon:

• A person who is a Muslim.
• A person who is Major (Baligh).
• A person who is Sane.
• An individual who possesses wealth that surpasses the Nisab threshold (Sahib-un-Nisaab).

If all aforementioned conditions are met, you should apply Zakat of 2.5% to your total savings and relevant assets.

When is the right time for Zakat?

You will only be required to pay Zakat after the lapse of a complete lunar year, provided you have maintained the qualifying wealth for an entire year. Your Zakat year thus starts the date when your wealth first reached or went over the Nisab and should be assessed on that day in every year thereafter.

Although people may give zakat at any time of the year, a majority of the Muslims prefer giving their zakat during the month of Ramadan. This is because the rewards and blessings of giving during this month are much higher than at any other time of the year.

“And continue to perform regular prayers, pay almstax, and lend to Allah a good loan. Whatever good you send forth for yourselves, you will find it with Allah far better and more rewarding [[73:20]."

What group of people can receive Zakat?

There are eight groups of people who can receive Zakat:

“Alms (here it means Zakat) are meant only for the poor, the needy, those who administer them, those whose hearts need winning over, to free slaves and help those in debt, for God’s cause, and for travelers in need. This is ordained by God; God is all knowing and wise.” (Quran 9:60)

1. The poor (Fuqara).
2. The needy (Masakeen).
3. Collectors of Zakat (Al-‘Aamileen).
4. New and prospective members of the Islamic community (Al-Mu’allafatu-Al- Quloob)
5. On behalf of (freeing) the slaves (Ar-Riqaab)
6. Those who are in debt (Gharimeen)
7. For the cause of Allah SWT (fi Sabilillah)
8. A person traveling and in need (Ibn-us-sabil)

"If one gives in charity what equals (the size of) one datefruit from the honestly-earned money and Allah accepts only the honestly-earned money—Allah takes it in His right hand and then enlarges its reward for that person (who has given it), as anyone of you brings up his baby horse, so much so that it becomes as big as a mountain.” (Sahih Bukhari, Vol. 2, Book 24, No. 491)

Which assets are liable to Zakat?

It is not necessary to pay Zakat on all the assets. Instead, Zakat is only levied on those assets that are capable of growth or increase in value. Such assets can be further described in broad categories as follows:

• Trading Assets.
• Cash Deposition and its Equivalent (such as prize bonds, travellers’ cheques, etc.)
• Metals: Gold and Silver
• Animals: Livestock such as goats, sheep, cows as well as camels. There is a different Nisab for this.
• Crops produced in the land: Agricultural output known as Ushr

Zakat is only imposed on the leftover value of these assets at the year’s end. There is no Zakat on the amount that has been utilized during the entirety of that year.