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Tuesday, July 16, 2024

IMPORTANT RULES

  • Zakat is obligatory on every Muslim (man or woman) who possesses 612 grams of silver or 87 grams of gold (nisab) or equivalent of cash or any other assets mentioned in the form below, upon the completion of one year.
  • 2.5% of the total amount must be paid as Zakat.
  • Zakat can be paid only to those Muslims who do not have the equivalent amount of cash or assets valuing nisab after all monthly living expenses are paid.
  • Those entitled to Zakat are mentioned in the Quran as follows:
    1. The poor (al-fuqarâ’), meaning low-income or indigent.
    2. The needy (al-masâkîn), meaning someone who is in difficulty.
    3. Zakat administrators.
    4. Those whose hearts are to be reconciled, meaning new Muslims and friends of the Muslim community.
    5. Those in bondage (slaves and captives).
    6. The debt-ridden.
    7. In the cause of God.
    8. The wayfarer, meaning those who are stranded or traveling with few resources.
  • Zakat can’t be paid to Sayyids, one’s parents, grandparents, children or grandchildren. The fuqaha (jurists) state it is better to give Zakat to one’s family members when they are in need.
  • Zakat cannot be paid to Non-Muslims.
  • Prior years’ Zakat which has not been paid till now must be paid immediately.
ZAKAT CALCULATION FORM


On lines 1 to 8, enter 0 if you possessed the item for less than one complete lunar year.

Zakat PAYABLE ASSETS AMOUNT
1 Cash on hand and in bank
2 Gold and silver coins, bars, jewelry, etc. (jewelry subject if excessive or for business)
3 Non-delinquent money loaned
4 Investment stock shares
5 Total RRSP investment *
6 Business money loaned
7 Business inventory (market value at zakat date)
8 Real estate (designated for sale)
9 Net business profits
Total ("0" if less than nisab @3 oz. of gold = $3,834/April 2019)

*: eshaykh.com/ibadat-worship/zakat-sadaqah/zakat-al-mal-on-401k