What do i pay zakat on

Base Nisab Value of Silver Gold. Value of Gold. Value of Silver. In hand and in bank accounts. Deposited for some future purpose, e. Given out in loans. Business investments, shares, saving certificates, pensions funded by money in ones possesssion. Value of Stock. Borrowed money, goods bought on credit. Wages due to employees.

Taxes, rent, utility bills due immediately. What is the meaning of Zakat? What is Nisab? What is the Zakat Percentage? What is Zakat Due On? If it is easier, you can spread out your Zakat payments over the whole year.

Calculate how much Zakat is due on you that year, and divide it into amounts twelve. At the end of the year, check your estimated calculation - if you underestimated the amount of Zakat you needed to pay, make sure you pay it off before the new year begins.

It can be easy to forget to pay or to miscalculate our Zakat or we may even be new to recognising this pillar of Islam. Missed Zakat would be calculated in the same way you calculate your current Zakat - however, you would use the Nisab from the missed Zakat year, as opposed to the current Nisab value. There are seven types of people who can receive Zakat: the poor, the needy, those in debt, those in the cause of Allah, recent reverts to Islam, those distributing Zakat, wayfarers, and those in captivity The Noble Qur'an, When giving with Muslim Hands, you can be sure your Zakat will be used to support disadvantaged communities in the fight against poverty.

Zakat It can be used towards improving education, the environment, health, food security and more. I still have questions about Zakat. If you still have questions about paying your Zakat, or our Zakat-eligible projects, please give us a call at Our team are happy to help you out.

Muslim Hands is an award-winning charity, established in to help those needing emergency relief and tackling the root causes of poverty. Established in , Muslim Hands is an aid agency and NGO helping those affected by poverty, conflict and natural disaster in over 20 countries worldwide.

Explore Muslim Hands. What is Zakat and why is it important to me? The majority of scholars agree the basic conditions for Zakat are that it is mandatory for Muslim adults, of sound mind, who own the minimum amount of Zakatable wealth, or Nisab, for at least one lunar year. You should know there are some schools of thought who put forward that Zakat is also due upon minors who have wealth or inheritance if they meet the other conditions: Muslim, complete ownership of the wealth for one lunar year, and meet the Nisab threshold.

The details and technicalities are beyond the scope of this blog post, but you can consult with your local scholar for more details. We just wanted to make you aware of this possibility. Just like taxes, knowing how to calculate Zakat is pretty straightforward in most circumstances. The basic formula is as follows:. Consult our Zakat Guide Booklet for details. Whether you decided to go with the gold or silver value for Nisab, determine the current cash value of your Nisab threshold.

If your Zakatable Wealth is more than the Nisab threshold, then you can move on to the next step! To make the calculation easier, you can use our Online Zakat Calculator , where you can just plug in your numbers. It will even calculate the value of your gold and silver automatically. This can be even more complicated or comprehensive, because our strength lies in our ability to be multi-faceted when you take in differences of scholarly opinion.

Simply call us at , and your queries will be answered by our resident scholar who is well-versed in the rules of Zakat and the major schools of Islamic law. We hope this blog has given you the confidence and tools for how to calculate your Zakat!

Wajiha Suboor works in the marketing department for Islamic Relief Canada. She's a passionate writer and consumer of stories in all forms. Just for You. If you have a business, all stock in trade is liable for zakat, including land and real estate that has been bought for the purpose of resale. Raw materials and goods produced for sale are also subject to zakat. The buildings, machinery, vehicles and so on that are essential for the business are exempt from zakat.

How do I calculate the value of stock in my shop? The value of the stock in your shop is its market value, not the buying price. You can calculate this by estimating how much you would expect to receive if you sold the entire stock at once to a single buyer. Yes, you would need to pay zakat on it.

Although when calculating its value, you would consider the price that you would be able to sell it for. I have taken out large commercial loans to expand my business, how will this affect my zakat calculation?

A loan you have taken out to acquire zakatable assets, such as raw materials, goods and so on, can be deducted from your capital. You pay zakat on what remains. A loan you have taken out to acquire non-zakatable assets, such as furniture, machinery and buildings is not deductible. Sane: The person on whom zakat becomes obligatory must be of sound mind according to Imam Abu Hanifa. Imam Malik holds that an insane person is still liable for zakat.

An adult: Children do not have to pay zakat, even if they own enough wealth to make zakat obligatory. In complete ownership and control of their wealth: The person must own and be in possession of the wealth, and also be free to spend or dispose of the wealth in any manner they like. If a person has made a loan of their wealth then they are not in a position to spend it until it is repaid.

In possession of wealth above the nisab threshold: The person should possess wealth above a defined amount required to satisfy the essential needs of themselves and their dependents nisab.

Free from debt: Someone in debt may deduct their debts from their assets. If what remains is still above the nisab threshold, zakat is due, otherwise not. In possession of the wealth for one complete lunar Hijrah year: If one owns zakatable wealth for a lunar year, zakat will become obligatory on the amount remaining at the end of the year, provided the total amount of wealth exceeds the nisab at the beginning of the year and the end, irrespective of any fluctuations in the months between.

Can I pay zakat in advance? Yes, zakat can be paid in advance before the year has ended, but you should make sure you have wealth equal to or above the nisab. Who can receive my zakat?