Zakat is the third pillar of Islam and an obligation on every eligible Muslim. Many people are unsure how to calculate it correctly. This simple guide explains how to calculate Zakat, the Nisab and which assets are included.
This is a general guide. Zakat rulings can be detailed, especially for business, property and loans. Please consult a qualified scholar or Mufti for your specific situation.
Who Must Pay Zakat?
- A sane, adult Muslim
- Who owns wealth equal to or above the Nisab
- And that wealth has been owned for one full lunar (Islamic) year
What Is Nisab?
| Measure | Weight |
|---|---|
| Gold | 7.5 tola (about 87.48 grams) |
| Silver | 52.5 tola (about 612.36 grams) |
Because silver is cheaper, the silver Nisab is much lower. Many scholars in Pakistan recommend using the silver Nisab when a person has mixed assets (cash, savings, some gold), as it is more beneficial for the poor. Check the current price of gold and silver on the day you calculate.
Which Assets Are Zakatable?
- Cash in hand and in bank accounts
- Gold and silver (jewellery included, according to the Hanafi view)
- Business inventory (stock for sale)
- Money owed to you that you expect to receive
- Investments such as shares (rules vary; consult a scholar)
- Property bought with the intention to sell
Not Zakatable
- Your home, personal car and household furniture
- Clothes and personal items
- Tools and equipment used for your work
Step-by-Step Calculation
- Add up all zakatable assets on your Zakat date.
- Subtract immediate debts and bills that are due.
- Compare the remaining amount with the Nisab.
- If it is equal to or above Nisab, pay 2.5% (divide by 40).
Example
| Item | Amount (PKR) |
|---|---|
| Cash and bank savings | 300,000 |
| Gold (market value) | 500,000 |
| Business stock | 200,000 |
| Total assets | 1,000,000 |
| Minus debts due | 100,000 |
| Net zakatable wealth | 900,000 |
| Zakat due (2.5%) | 22,500 |
The figures above are only an example.
Who Can Receive Zakat?
Zakat is given to the eight categories mentioned in the Quran (Surah At-Tawbah 9:60), including the poor, the needy and those in debt. It cannot be given to your parents, grandparents, children or spouse.
Frequently Asked Questions (FAQs)
What is the Zakat rate?
Zakat is 2.5% of your net zakatable wealth held for one lunar year above the Nisab.
Is Zakat due on gold jewellery?
According to the Hanafi school (commonly followed in Pakistan), yes. Other schools differ on regularly worn jewellery.
Do banks in Pakistan deduct Zakat?
Banks may deduct Zakat from certain accounts unless an exemption declaration is submitted. Check with your bank for current rules.
Conclusion
Calculating Zakat is simple once you list your assets and debts. Pay it on time, give to deserving people, and consult a scholar for complex cases. May Allah accept it from you.