Zakat On Gold
Every year around the time of the Islamic month of Ramadan, Muslims from around the world look up how much gold is worth.
The reason being that ‘Zakat’, one of the pillars of Islam, is payable on gold assets that are held by individuals. Zakat is a form of charity that is required to be paid in order to purify one’s wealth. In the case of Zakat on gold, it is payable at a rate of 2.5% of the value of gold assets that amount to more than 85g.
The calculator below allows you to easily enter how much gold you have, its purity and weight and figure out how much zakat you owe.
Note
- Opinion differs as to whether Zakat is payable on gold jewelry that women wear.
Calculate Your Zakat on Gold
Purity-Based Zakat on Gold Calculators
For portfolios made up of certain gold purities, the following specific calculators can be used if you prefer.
If your bullion portfolio is made up solely of 24kt gold, you can use this specific ‘Zakat on 24kt Gold‘ calculator.
If your bullion portfolio is made up solely of 22kt gold, you can use this specific ‘Zakat on 22kt Gold‘ calculator.
If your bullion portfolio is made up solely of 18kt gold, you can use this specific ‘Zakat on 18kt Gold‘ calculator.
If your bullion portfolio is made up solely of 14kt gold, you can use this specific ‘Zakat on 14kt Gold‘ calculator.
Rules for Zakat on Gold
It is interesting to note that even though many Muslims pay their Zakat around the time of Ramadan, it is not necessary that this should be the case. Zakat is only payable once a certain amount of wealth, known as the ‘nisab’ is attained and held for the duration of lunar year.
In the case of gold, the ‘nisab’ is 20 ‘mithqal’ which is a unit of mass equal to 4.25g. The gold dinar coin, first issued in 77 AH (696-7 CE) by Caliph Abd al-Malik ibn Marwan had a weight of 1 mithqal. Thus for example, any Muslims who held 20 gold dinars for the period of a year would have to pay half a dinar as zakat.
Clearly, the ‘nisab’ can be obtained at any point during the year and Zakat should be paid after one lunar year has passed. The reason many Muslims choose to pay during Ramadan is because it is an especially blessed month in which good deeds are multiplied. Nonetheless, this is not obligatory and it is more important that the right amount of Zakat is paid by the right time.
Related Search
how much zakat on gold
how to pay zakat on gold
where to pay zakat on gold
what is zakat on gold
