ZAKAT CALCULATION GUIDE
This instruction sheet has been carefully prepared, based on renowned Fihq reference,
as Fatwas by reconized scholars. It is offered to you as a guide for ZAKAT calculation.
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Zakat Computation
Introduction
Their are several types of monetary items on which Zakat must be paid. They are namely,
Cash, Gold, Silver, Trade and Merchandise, Livestock, Plowed Land produce,
and Buried Treasures. In the sections to follow, the above mentioned monetary items will
be explained. In addition, the amount of Zakat to be paid on each monetary item and its due date will be presented. In general,
Zakat is mandatory when two conditions are simulaneously satisfied: Nisab and Due Date.
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Cash
- Nisab: The Nisab for cash is the equivalent of 3 oz of pure
Gold You may refer to the wall Street Journal for current rates.
- Due Date: Zakat on cash is due one HIJRI year from the day your cash
assets reach the Nisab. If you don't remember the exact date, then choose the earliest date
that allows for safety margin, adhere to it. REMEMBER THE DATE HAS TO BE A HIJRI DATE (eg.
1¹ of Ramadan). If at any time your net cash assets fall below the Nisab, the due
date is delayed to one HIJRI year from the day it reaches the Nisab again. In other words,
your money must be above the Nisab for 12 conecutive lunar months in order for Zakat to be
due. You may pay your Zakat before the due Date. However, all your calculations should be
based on what you will possess on the due date not what you possess on the payment day.
Cash Includes:
- Checking, Saving, Cash in hand.
- Regular Income.
- Non-delinqent Loans.
- Refundable Deposits.
- Expected Tax Return as of the due date.
- Bonds.
- IRA. Pension Loans
- Debts: debts are non-deductible.
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Gold and Silver
- Nisab: The Nisab for Gold is 3 oz. of Gold, and that for
Silver is 21 oz. of pure Silver.
- Due Date: The same discussion pertaining to the Cash Zakat
due date applies here. Note that the due date of Gold and Silver need not coincide with
the due date of Cash. They are two distinct monetary items.
Gold and Silver Include:
- Gold and Silver in hand, Gold and Silver accounts, Gold and Silver
certificates.
- Men's Gold and Silver jewelry (although unlawfull - except Silver
rings, Zakat still has to be paid on these items).
- Women's Gold and Silver jewelry:
Such jewelry is not subject to Zakat unless it was acquired primarily as a way of
saving.
- Gold and Silver Utensile and Tools (although unlawful for both men
and women, one still has to pay Zakat on these items).
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Trade and Merchandise
- Nisab: It is the same as Cash and Gold.
- Due Date: The due date for Merchandise Zakat payment is one
HIJRI year from the date you started your business, even if your starting capital was
below Nisab.
Gold and Silver Include:
- Business Bank account.
- Business Cash in hand.
- Stocks.
- Inventory.
- Accounts receivable.
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Zakat Recepients
In Islam, only eight Categories of people are eligible to receive Zakat. For example, one
cannot pay Zakat to build mosques or hospitals. Although these acts are honorable, one
must not spend Zakat money on them.
Also Zakat is taken from Muslim and only Muslims can benefit from it.
These is consensus (Ijmaa') among scholars regarding this issue.
Paying Your Zakat:
When paying any Zakat amount,
one's intention (Niyyah) must be that this is Zakat and not Sadaqah (donation).
The Due Date for Zakat payment is the date on which Zakat should be in the hands of those
who are entilted to it. Therefore, when you delegate your Zakat payment to others,
make sure you inform them about your due date so that Zakat is delivered on time.
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Duaa' For Zakat
Finally, when paying Zakat, it is Sunnah to say:
"Our Lord! Accept from us, For you are the All-Hearing, the All-Knowing"
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For more information, please contact:
Care International
510 Commonwealth Avenue, #275
Boston, MA 02215
Phone: (617) 789-4448
Fax: (617) 789-4488
Email: [email protected]
WWW: http://www.cybercom.net/~cib
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