Friday, 16 February 2007

Zakat - 104


Zakat on Gold, Silver and Money

Zakat is obligatory for anyone who has possessed the zakat-payable amount of gold or silver for one year. (One year here refers to One-Hijri-Calendar Year and not based on the Gregorian calendar.)

The zakat-payable minimum for gold is 84.7 grams, on which 2.1175 grams (2.5 percent) is due.

The zakat-payable minimum for silver is 592.9 grams, on which 14.8225 grams (2.5 percent) is due. There is no zakat on less that this.

One must pay the zakat value of 2.5 percent on all money that has been saved for a year if it equals at least the market value of 592.9 grams of silver (that is current during the year). While there is a considerable difference between the value of the gold zakat minimum and the silver zakat minimum, the minimum for monetary currency should correspond to that of silver, since it is better for the poor.

Zakat is exacted proportionately (2.5 percent) on any amount over these minimums, whether the gold or silver is in coins, ingots, and jewellery prepared for uses that are unlawful or offensive, or articles which are permanent acquisitions.

There is no zakat on gold or silver in the shape of jewellery that is for permissible use.

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