Government notifies Nisab for Zakat for the current year
The Federal government has fixed Nisab for Zakat deduction on bank accounts...
Zakat, the fourth pillar of Islam, is a religious obligation and the purification of the wealth you possess. It orders all Muslims who meet the necessary criteria to donate a specific amount of wealth every year for a charitable purpose.
Zakat is said to filter yearly earnings that are over and above what is needed to provide for the basic needs of a person or family.
During this holy month of Ramadan, every Muslim is bound to offer Zakat to not only purify our souls but also to purify our wealth.
However, people usually have concerns about how the Zakat should be paid. Here is the complete guide about this pillar’s calculations, liabilities, and other queries.
For this (lunar) year, the government has fixed Rs80,933 as Nisab for Zakat. Based on interviews of Islamic scholars, Profit explains what is included in Nisab and how you can calculate your Zakat amount based on your Nisab.
Nisab can be calculated individually by simply calculating the difference between the value of one’s assets for Zakat and one’s zakatable liabilities.
For example, if person A owns assets worth Rs100,000 and their liabilities are Rs10,000, the difference between their assets and liabilities comes out to Rs90,000, which is that person’s Nisab. Since this value is greater than the Nisab limit set by the government, Zakat is obligatory on this person.
A person is eligible to pay Zakat if the total of his/her assets is worth more than 7.5 tola/3 ounces/87.48 grams of gold, or 52.5 tota/21 ounces/612.36 grams of silver for a full lunar year. However, the Nisab should be converted to the local currency rate. If a person has money equals to the Nisaab, he/she can pay Zakat.
Rates and currency values vary in different countries. Here, we are using Pakistani Rupees (PKR) to guide you.
Zakat is calculated as per the current rates of gold and silver in the country. For example, take the price of one tola gold and multiply it with 7.5. This will be the worth you should own to give Zakat.
Or, if you have silver, take the price of one tola silver and multiply it with 52.5. you will get the amount.
(Per tola gold) * 7.5 = amount you should have
(per tola silver) * 52.5= amount you should have
Experts say that if you have assets in gold, you should consider it as a Nisab. However, if you have assets in the form of gold, silver, cash or mix, you should prefer silver as a Nisab.
If you want to know whether you are eligible to pay Zakat or not, here is a simple formula.
At first, calculate the full assets you have for a lunar year by adding them all.
After that, sum up your immediate liabilities to remove it from your total asset
After that, subtract the liabilities from your total assets. The result will be your net worth on which Zakat is applicable.
Full assets – Zakat liabilities = Net worth on which Zakat is applicable
Experts say that the rate of Zakat applicable is 2.5% or the 40th portion of your total wealth for one lunar year. The net worth you have calculated before is multiplied with 2.5% of the total wealth. The answer will be the amount of Zakat to be paid.
Net worth * 2.5% = Zakat amount.
Net Worth for Zakat * 0.025 = Zakat amount
Net worth/40 = Zakat to be paid.
These are the people to whom you can give Zakat, as per the laws.
However, it cannot be given to
Yes. it can be given to non-dependent family members. Non-dependent family members can be
Yes, if anyone you know needs full amount, you can give Zakat to that person.
Yes. But you should give Zakat before the beginning of new lunar year. you have to pay the installments in the same year.
Yes. You can give more amount than the prescribed 2.5% of the net income.
Does a person have to include the savings in the Zakat he/she has saved for Hajj?
Yes. All savings, including Hajj savings, are included in the total amount a person possesses.
Yes. Future liabilities are not excluded from Zakat. Only pending liabilities, such as bills, and other expenses that have to be paid but haven’t been paid yet, are to be excluded from Zakat. You cannot exclude the amount of bills from your current net worth.
No. you have to pay Zakat from the assets excluding your personal use items.
No. Zakat is not applicable on future assets. But it is possible only if a person has purchased an asset as an investment with the intention to sell it soon. Or only if the person has definite confirmation regarding the sae of any asset but do have money currently.
If a person has 7.5 tola/3 ounces/87.48 grams of gold or 52.5 tota/21 ounces/612.36 grams of silver or its cash equivalent for a full lunar year, then you are considered Sahib-e-Nisab and should pay Zakat
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