Zakat on Gold
I still remember the day when I first seriously thought about zakat on gold. It wasn’t while reading a lesson or a book. It was when a few days before Ramadan, my mother opened her old jewelry box. It contained her wedding bracelets, a necklace given to her by her grandmother, and a few gold coins wrapped in a cloth.
I was silently watching her clean each piece of jewelry. Suddenly, a question came to my mind, is zakat due on all of these? Is zakat due on the jewelry that is worn every day? How do we calculate it correctly?
That moment became the beginning of learning for me. In this blog, I will explain zakat on gold to you in very simple and easy words, as if we were sitting face to face and talking.
What is zakat on gold
Zakat is one of the five fundamental pillars of Islam. It is not an optional charity, but an obligatory act of worship. If a Muslim has a certain amount of gold and one lunar year has passed on it, then it becomes obligatory to pay Zakat on it.
Gold has always been considered a symbol of wealth and security. That is why it has been included in the Shariah as a zakatable asset. Whether the gold is in the form of jewelry, biscuits or coins, if it is your property, it must be accounted for.
What is the Nisab of Gold
The Nisab of gold is seven and a half tolas. In grams, this is approximately 87.48 grams.
If you have this much or more gold and a full Islamic year has passed on it, then Zakat becomes obligatory on you.
Whether that gold is kept at home, in a locker or in a bank safe, if it is your property, it will count.
For example, if someone has 100 grams of gold, since it is more than the Nisab, Zakat will be obligatory on him.
How much Zakat is paid on gold
Zakat is paid at two and a half percent of the total current value of gold.
Remember that Zakat is not paid on the purchase price of gold but on the current market price. Because the price of gold changes over time.
Let’s look at a simple example.
If you have 100 grams of gold and the price of one gram is 20 thousand rupees, then the total price becomes 2 million rupees.
Now take two and a half percent of 2 million. This becomes 50 thousand rupees.
This is the amount that you have to pay as Zakat.
Is Zakat also due on worn jewelry
This question is very common.
There is a difference of opinion among scholars on this issue. According to some scholars, there is no Zakat on jewelry that is in daily use. While according to other scholars, if the jewelry reaches the Nisab, then Zakat is obligatory on it even if it is worn.
In the subcontinent, the most cautious view is that Zakat should be paid on all gold.
If anyone has any doubts, it is better to consult a reputable scholar.
What is the ruling on mixed gold
Most jewelry is not pure 24 carat. Most are 22 or 18 carat. It also contains other metals.
When paying Zakat, it is important to know the actual weight of pure gold. A jeweler can help with this. Because the Nisab is calculated based on pure gold.
Also Read: Unlock Divine Blessings with Ramadan Duas: Your Complete Guide
Gold kept for investment
If gold is purchased for investment, such as gold biscuits or coins, then Zakat is obligatory on it.
Because it is kept with the intention of increasing wealth. Therefore, it should be calculated with complete honesty.
Calculation by combining with other wealth
If you have gold less than the Nisab, but the Nisab is fulfilled by adding cash or silver, etc., then Zakat will be obligatory.
For example, if you have 50 grams of gold and a large amount of cash with you, the two will be calculated together.
When does the Zakat year begin
Your Zakat year begins on the day your wealth reaches the Nisab. It becomes obligatory to pay Zakat after completing a lunar year.
Many people like to pay Zakat in Ramadan because the reward is higher in this month. But it is important that the year has been completed.
Importance of Zakat
Zakat is not just a financial act of worship, but also a purification of the soul. It reduces the love of wealth from a person’s heart and creates a spirit of helping others.
When my mother paid Zakat on her wedding bracelets for the first time, she said, “This ornament made me happy, now it will make someone else’s hardship easier.”
This is the real beauty of Zakat.
To whom can Zakat be given
Zakat can only be given to deserving people, such as the poor, needy or indebted people.
Zakat cannot be given to parents, children, grandparents or spouses because it is already obligatory to bear their expenses.
Common mistakes
• Paying Zakat on the old purchase price.
• Completely ignoring the jewelry you are wearing.
• Not including gold kept in the locker in the calculation.
• Delaying Zakat without reason.
The last thing
Paying Zakat on gold may seem like a financial responsibility, but in reality it is a heart-warming act of worship.
When you calculate Zakat correctly and pay it, your heart feels light. You are sure that you have fulfilled your duty.
If you have gold that reaches the Nisab and a year has passed, calculate it today and pay Zakat.
Believe me, wealth does not decrease, but blessings increase. And one day you yourself will feel that Zakat has enriched not your wealth but your heart.
FAQs
Is Zakat on 7.5 tola gold?
Yes. If you own 7.5 tola gold, which is equal to the Nisab, and one full lunar year has passed over it, then Zakat becomes obligatory. You will have to pay 2.5 percent of its current market value.
How much Zakat on gold?
Zakat on gold is 2.5 percent of its total current market value. First calculate the present price of your gold, then take out 2.5 percent from that amount.
How much Zakat on 1000 rupees?
If 1000 rupees is part of your total savings and your overall wealth reaches the Nisab, then you pay 2.5 percent on it. The Zakat on 1000 rupees alone would be 25 rupees, but only if your total assets meet the Nisab requirement.
What is the criteria for Zakat on gold?
The main criteria are that your gold must reach at least 7.5 tola or 87.48 grams, you must have full ownership of it, and one complete Islamic lunar year must pass while it remains in your possession. If these conditions are fulfilled, Zakat becomes obligatory.
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