Zakaat Calculations
Importance of Zakaat Distribution:
Zakaat is the fourth pillar of Islam. The Holy Qur'an has
clearly stated that it is upon Muslims to purify their wealth
by paying out zakaat to the rightful recipients of zakaat.
Prophet Muhammad (SAW) has also clearly demonstrated how
this is supposed to be done. Presented below is a few simple
rules on zakaat calculation and distribution.
Nisaab:
Nisaab is the minimum exemption limit of wealth or possession
on which Zakaat is payable. The Nisaab for Gold is 87.48
grams. The Nisaab for Silver is 613.35 grams. The Nisaab
for Cash, which may be in the form of notes and coins, Halal
bonds and bank deposits in non-interest bearing accounts
is Fjd$250.00. Merchandize intended for resale or trade
is also applicable fully for zakaat. Zakaat is only due
on animals which graze on the pastures but not on animals
which are fed in the house with fodder. The Nisaab for goats
and sheep is 40.
Calculation:
In the case of gold and silver, if someone has more than
the nisaab as stated above, then the weight of the gold
or silver in grams should be multiplied by the current market
cost of gold and silver. This should then be multiplied
by 2.5% to get the zakaat payable. In the case of cash,
if someone has more then the nisaab for cash, then it should
be multiplied by 2.5% to get the zakaat payable. Similarly,
in the case of merchandize, there is no nisaab but all merchandize
intended for trade or resale is zakaat payable at the rate
of 2.5%. In the case of livestock as explained above if
someone has 40 to 120 goats and sheep, then they have to
pay out 1 goat or sheep as zakaat. if someone has 121 to
200 goats or sheep, then they should give out 2 goats or
sheep as zakaat. If someone has 201 to 300 goats or sheep,
they should give out 3 goats or sheep as zakaat.
Distribution of Zakaat:
There is varied opinion on how Zakaat should be distributed.
The four schools of thought holds differences in opinion
on who are the recipients of zakaat. It is highly advisable
that all Muslims undertake research in light of the Holy
Qur'an, the Hadith and reputable research works to understand
the distribution of zakaat properly. It is also highly advisable
that your local Imam at your nearby masjid is consulted
on zakaat distribution properly