Zakat on Gold
Zakat on Silver
Zakat on other jewellery stones (Like Diamonds, Platinum, Titanium, etc.)
Zakat on cash or bank savings
Zakat on property
Zakat on investment
Why is it important to use the Zakat calculator before paying Zakat?
Do you know the amount of Zakat on gold you need to pay? Calculating this might become overwhelming, so you can use a Zakat calculator to do the same. However, before we discuss the zakat calculator, let me briefly describe it.
Why is Zakat important in Islam?
Zakat is a mandatory tax that Muslims need to pay on their property. One of the five pillars of Islam, zakat, comes after Namaz (prayer).
Zakat is believed to purify whatever remains of the wealth of a Muslim and is a means of closeness to Allah. It also helps to develop a sense of brotherhood and humanity in the community by helping people who don't have enough wealth for basic necessities.
In countries where Sharia, or Islamic law, is followed, scholars collect the zakat, which is later distributed to the poor and needy. However, in many other nations, it is left up to the individual to voluntarily distribute their zakat.
Unlike many popular beliefs, you don't just pay zakat on gold but also on food grains, fruits, bovines and other rearing animals, movable goods, and other ornaments. It must be paid each year depending on the possessions one has during that particular year.
How much should I pay for Zakat?
It is 2.5% of a person's wealth in a year for the Hanafi group and is different for the different sects. However, there is a particular threshold called Nisab, after which a person needs to pay tax. If your wealth is less than that threshold, you don't need to pay zakat. According to Islamic law, zakat is equal to 87.48 grams of gold (7.5 tolas) and 612.36 grams of silver (52.5 tolas), respectively.
You must determine the equivalent monetary value of the exchange rates the Prophet Muhammad (SAW) established in your local currency because we no longer use silver or gold as a currency. To do this, check the market price of gold and silver.
To calculate your zakat, follow these four easy steps:
- Figure out what you have.
- Then deduct any debt you have.
- Calculate the remaining balance and ensure that it exceeds the Nisab value.
- Calculate 2.5% of that, and there you have the amount for Zakat.
Due to the complex zakat calculation formula, it becomes difficult to calculate the accurate amount to pay. Thus, one can always use a zakat calculator for accuracy.
How does the zakat calculator function?
Our zakat calculator helps you to simplify the amount required to pay zakat. We have broken down the calculation process into assets taken into consideration for zakat, i.e, gold, silver, cash, savings, property, investments, etc.
This is how we calculate zakat on gold:
We know different carats of gold have different values. Thus, our zakat calculator works differently for different carat gold. We calculate gold for 24 carats, 22 carats, 20 carats, and 18 carats. All you need to do is to enter the amount of gold you own in grams and the current market price of one gram of gold. As a result, you will get the amount of zakat you need to pay. A similar calculation is done for silver.
In order to calculate zakat on jewelry, you need to mention its approximate price.
Zakat on cash or bank savings:
In this case, you can calculate the zakat on the cash you have by entering the amount you have in hand or the amount you have saved in your bank in the form of a current account, saving account, or fixed deposit. You can also mention the other forms of cash you have, and the zakat calculator will let you know the exact amount of zakat payable on them.
You can also calculate zakat on your investment and property by mentioning the approximate value of these assets. In the case of investment, you can calculate the investment in stocks, bonds, mutual funds, shares, or other forms of investment.
Our zakat calculator works for many international currencies like the Dollar, Euro, Yen, Pound, Rial, and Dinar. We also have a zakat calculator in rupees.
Rules you should know about paying zakat:
- Every adult, sane Muslim has an annual obligation to pay zakat on their wealth. Other requirements, such as being debt-free, must also be met in order to be eligible to pay Zakat.
- Before paying Zakat for their excess wealth must have owned the niqab for one lunar year.
- One must pay zakat as soon as it is due.
- Only those who fit certain requirements are eligible to receive zakat.