Noor Thalassemia Foundation

With the arrival of Ramadan, eligible or wealthy Muslims are concerned about the Zakat obligation. The major question comes if they need to pay Zakat or not. Remember that it is the Nisab that decides whether you are eligible to pay Zakat or not. Muslims who meet the Nisab, the set criteria for Zakat, must pay Zakat, as ignoring this can make them sinful. Wondering about Nisab and Zakat calculation, don’t worry, we have got your back. This guide highlights what Nisab is and how one calculates it to pay Zakat fairly.

What is Nisab in Zakat?

Nisab is considered the minimum amount that decides if someone is eligible to pay Zakat. Remember that only those Muslims whose total wealth is equal to or above the Nisab are subject to pay Zakat. It is obligatory to pay Zakat once for a full lunar or Islamic year. However, if you possess wealth lower than the Nisab, you are exempt from paying Zakat. However, you can offer Sadaqah and other charity based on your wealth or needs.

What is the Significance of Nisab?

The Nisab in Zakat is of great importance. It indicates that Muslims who are financially stable can pay Zakat. The beauty of Islam is that it does not burden the struggling or poor Muslims to pay Zakat. Knowing the Nisab is a way of making the Zakat payment fair and balanced.

The Amount Associated with Nisab

The amount of Nisab is based on the gold and silver you possess. Islam decides the following Nisab to pay Zakat for a full lunar year:

1. Nisab for Gold: The Nisab for gold is calculated as 7.5 tola or 87.48 grams
2. Nisab for Silver: The Nisab for silver is calculated as 53.5 tola or 612.36 grams

A Beginner’s Guide to Calculating Nisab for Zakat

Beginners who are new to Pay Zakat and are struggling to find the Nisab, this guide will help them by all means.

1. Start by evaluating the current value of gold and silver. For this purpose, you can go through the local market, contact the Zakat distributing organizations, and browse authentic online resources.
2. If you have Gold, you can calculate Nisab on gold by following the given formula: Gold Nisab = 7.5 tola or 87.48 grams x Current value of 1 gram gold
3. If you have silver in your possession and want to calculate nisab on it, follow the given formula: Silver Nisab = 52.5 tola or 612.36 grams x current value of 1 gram silver.

Mistakes to Avoid when Calculating Nisab

While calculating Nisab, people make mistakes unintentionally. Remember that any mistake can make the process unfair or unbalanced. Accuracy in paying Zakat is necessary, as underpaying can make you sinful. Check out the common mistakes and keep in mind while calculating Nisab:

1. The basic mistake is not to get updated prices of gold and silver. Ensure you get prices from authentic sources and calculate Nisab accordingly.
2. Sometimes, people forget to add small savings. You must add everything, even small digital balances.
3. Calculating business stocks is also necessary as trade goods are applicable for Zakat.
4. Avoid mixing personal assets with Zakat assets. Personal belongings, such as house, car, clothes, furniture, etc., are not counted as Zakat assets.
5. Many people wait for Ramadan to pay Zakat. Remember that Zakat is obligatory to pay for a full Islamic or lunar year. One who is eligible can pay it throughout the year to those who really deserve it.

Note: If you have other doubts before spending on Zakat, you must discuss them with Zakat professionals or Islamic scholars. Remember that underpaying your Zakat is a sinful act.

What is Zakat and Its Key Components?

Zakat is considered an obligatory form of charity in Islam. It is mandatory to pay for a full lunar year only by eligible Muslims. Muslims whose total wealth is equal to or above the Nisab are subject to pay Zakat. Zakat is 2.5% of your total eligible wealth. To find the exact payable amount, calculate your wealth and get 2.5% of it by multiplying your total eligible wealth by 0.025 or by dividing it by 40.

Zakat is mandatory for Muslims who are adults and sane. Also, it is said that Muslims who have complete control over their wealth are subject to paying Zakat. Remember that you need to pay Zakat to deserving people. Allah (SWT) has mentioned 8 types of people who are considered the eligible candidates to receive Zakat. These include Fuqarah, Masakin, debtors, slaves, those who converted to Islam, Zakat administrators, those struggling for the cause of Allah, and wayfarers.

Use the Online Calculator to Find Zakat

Once, after calculating Nisab, many people get confused about calculating the exact amount of Zakat. You can calculate the Zakat manually if you are confident about doing this. However, the Online Zakat Calculator is the best way to find the exact payable amount without any confusion.

Noor Thalassemia Foundation developed a user-friendly Zakat Calculator. It helps you calculate Zakat based on the gold, silver, cash, or any trade goods you have. Besides this, it also helps you add liabilities if you have any, to get the exact Zakat amount.

Give Your Donations to Noor Thalassemia Foundation

Noor Thalassemia Foundation, NTF, is a non-profit organization working to relieve patients suffering from thalassemia and other blood disorders. From public awareness to counselling, diagnosing, medication, blood transfusion, and management, our staff are giving their best. You can give your donations to NTF and join us in the fight against serious blood disorders.

Frequently Asked Questions

How to calculate Nisab for fluctuating wealth?

Fluctuating wealth is not a big deal. You need to calculate all of your Zakat-applicable wealth. If the final amount is equal to or above the Nisab, you need to pay Zakat for a full lunar year.

Do I need to pay Zakat on my salary?

Salaried persons whose total wealth is equal to or above the Nisab are subject to pay Zakat.

Do I need to pay Zakat if I am not working?

Whether you are working or not, if you have wealth equal to Nisab and you have complete control over your wealth, then you have to pay Zakat based on your total eligible wealth.

On what items is Zakat applicable?

The gold and silver you have, even daily wear jewelry, are counted as Zakatable assets. No other precious metals are counted as Zakatable assets unless you gathered them for business purposes. Besides gold and silver, Zakat is mandatory on cash in hand, savings, investments, price bonds, and all other trade goods.

What items are exempt from paying Zakat?

Except for gold, silver, and items for trade purposes, your personal belongings are not considered Zakatable assets. These belongings include your home, car, clothes, furniture, and others.