This instruction sheet has been carefully prepared, based on renowned Fiqh references, as well as Fatwas by recognized scholars. It is offered to you as a guide for Zakat calculation.
1. Nisab: The Nisab for cash is the equivalent of 3 oz. of pure Gold which is valued at approximately $1200 as of Jan 1996. You may refer to the Wall Street Journal for current rates. 2. 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 a safety margin, adhere to it . REMEMBER THE DATE HAS TO BE A HIJRI DATE (e,g. 1st 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 Nisab again. In other words, your money must be above the Nisab for 12 consecutive 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 : 1. Checking , Savings* and Cash in hand 2. Regular Income 3. Non-delinquent Loans 4. Refundable Deposits 5. Expected Tax Return as of the Due Date 6. Bonds* 7. IRA*, Pension Plans* 8. Debts: debts are non-deductible
1. Nisab: The Nisab for Gold is 3 oz. of pure Gold, and that for Silver is 21 oz. of pure Silver. 2. Due Date: The same discussion pertaining to the CASH Zakat Due Date applies here. Note that the Due Date of GOLD or SILVER need not coincide with the Due Date of CASH. They are two distinct monetary items. GOLD and SILVER include: 1. GOLD and SILVER in hand , GOLD and SILVER accounts, GOLD and SILVER certificates. 2. Men's GOLD and SILVER jewelry (although unlawful -except SILVER rings, Zakat still has to be paid on these items). 3. Women's GOLD and SILVER jewelry: Such jewelry is not subject to Zakat unless its amount is excessive or unless it was acquired primarily as a way of saving. 4. GOLD and SILVER Utensils and Tools (although unlawful for both men and women, one still has to pay Zakat on these items).
1. Nisab : It is the same as Cash and Gold. If you own several distinct businesses, then consult our office for proper Nisab Computation. 2. 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 the Nisab. TRADE and MERCHANDISE include: 1. Business Bank Account 2. Business Cash in Hand 3. Stocks* 4. Inventory 5. Accounts Receivable
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. These eight categories are: Poor Muslims, Needy Muslims, Muslims in Debt, Mujahideen, New Muslims, Slaves, Zakat Workers and Wayfarers. Also Zakat is taken only from Muslims and ONLY Muslims can benefit from it. There is consensus (Ijmaa') among scholars regarding this issue
When paying any Zakat amount, one's intention (Niyyah) must be that this is Zakat (not charity). The Due Date for Zakat payment is the date on which Zakat should be in the hands of those who are entitled to it. Therefore, when you delegate your Zakat payment to someone, make sure you inform him about your Due Date so that Zakat is delivered on time.
Finally, when paying Zakat, it is sunnah to say: "Our LORD! Accept from us, For you are the All-Hearing, the All-knowing"
Please refer to the calculation guide for instructions 1. Nisab of Cash $________ 2. Due Date: / / Cash on Due Date Amount 3. Checking Account $ 4. Saving Account* $ 5. Cash in Hand $ 6. Regular Income $ 7. Non-Delinquent Loans $ 8. Refundable Deposits $ 9. Expected Tax Refund $ 10. Bonds* $ 11. IRA*, Pension Funds*,401K* $ 12. Debts $xxxxxx 13. Total $ 14. Zakat on Cash = Total x 0.025 $ 15. Nisab of Gold $_____ 16. Due Date: / / Gold on Due Date Value 17. Gold in Hand $ 18. Gold Amount $ 19. Gold Certificates $ 20. Men's Gold Jewelry $ 21. Women's Gold Jewelry $ 22. Gold Utensils & Tools $ 23. Total $ 24. Zakat on Gold = Total x 0.025 $ 25. Nisab on Silver $_______ 26 .Due Date: / / Silver on Due Date Value 27. Silver in Hand $ 28. Silver Account $ 29. Silver Certificates $ 30. Men's Silver Jewelry $ 31. Women's Silver Jewelry $ 32. Silver Utensils&Tools $ 33. Total $ 34. Zakat on Silver = Total x 0.025 $ 35. Nisab of Trade $_____ 36. Due Date: / / Trade Items on Due Date Value 37. Business Bank Account $ 38. Business Bank Account $ 39. Stocks* $ 40. Inventory $ 41. Accounts Receivable $ 42. Total $ 43. Trade Zakat = Total x 0.025 $ Total Zakat Amount 44. Zakat on Cash $ 45. Zakat on Gold $ 46. Zakat on Silver $ 47. Zakat on Trade $ 48. Total Zakat To Be Paid $ *Items identified by an asterisk may be interest-based. Although such assets are subject to Zakat, dealing in interest is unlawful and is strongly condemned by Allah and his prophet (pbuh).