Sir, Assalamo Alaikum

I have gold jewelry worth about one hundred thousand dollars. Do I have to pay zakat on entire amount or should I, first, subtract the amount of nisab, and then pay zakat on the remaining amount? Please also tell me how much zakat I have to pay.

Name withheld.

 

Dear Sister Walekum Assalam WRWB

 

May Allah increase your knowledge, and reward you for that, Amen!

 

Answer

When your liquid asset reaches the threshold of zakat, you are supposed to pay zakat on the total value of your liquid asset, including gold, silver, cash, shares, etc. You should not subtract the threshold amount from the total asset to calculate your zakat.

Besides this amount of one hundred thousand dollars of gold jewelry, you should add the amount of silver value, cash with you, and any investment value to obtain the total value. You are supposed to pay 2 and a half percent of the total value.

Hope it will help you in calculating your zakat. Wassalam

Dr. Syed Hasanuddin Ahmad