A ZAKAT CALCULATION GUIDE
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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.
ZAKAT COMPUTATION
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Introduction
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There are several types of monetary items on which Zakat must be paid . They are namely:
Cash, Gold, Silver, Trade and Merchandise, Livestock, Plowed Land Produce, and Buried
Treasures. In the sections to follow, the above mentioned monetary items will be
explained. In addition, the amount of Zakat to be paid on each monetary item and its due
date will be presented. In general, Zakat is mandatory when two conditions are
simultaneously satisfied: Nisab and Due Date.
Cash
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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
GOLD and SILVER
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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).
TRADE and MERCHANDISE
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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
ZAKAT RECIPIENTS
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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.
PAYING YOUR ZAKAT: 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.
DUAA' FOR ZAKAT:
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Finally, when paying Zakat, it is sunnah to say:
"Our LORD! Accept from us, For you are the All-Hearing, the All-knowing"
FOR MORE INFORMATION:
====================
For more information, contact:
CARE INTERNATIONAL
510 Commonwealth Ave , #275
Boston, MA 02215
Phone : (617) 492-2731
Fax : (617) 492-6775
e-mail: careboston@aol.com
ZAKAT WORKSHEET
===============
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).
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