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Zakat means both 'purification' and 'growth' .

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  • tanveer.shaikh
    Zakat Calculator

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    InshaAllah, the attached Zakat Calculator will be helpful for claculating your Zakat !!!!

    Zakat Calculator
    Weight in Grams Price/Gm Estimated Value Zakat Payable
    1 ZAKAT ON GOLD (2.5%)
    1a 24 Carat Gold/Jewelry . -
    1b 22 Carat Gold/Jewelery . -
    1c 18 Carat Gold/Jewelry . -
    1d Other Gold Valuables. (Pls insert the Current Estimated Value) -
    2 ZAKAT ON PRECIOUS STONES (2.5%) (Contentious subject. Refer Notes. Don’t Calculate if you disagree or are uncomfortable.)
    Calculate the nett Market Value of the Precious stones like Diamonds, Rubies, Etc. and add them to the Estimated Value Column -
    3 ZAKAT ON SILVER (2.5%)
    Include Household Silver Utensils, Artefacts, and Jewelery. For Utensils, usually the silver is 90% pure so take 90% of the total weight - -
    4 ZAKAT ON CASH IN HAND /BANK (2.5%) Actual Value
    4a Cash in Hand 50,000.00 1,250.00
    4b Cash in Bank in Savings Accounts -
    4c Cash in Bank in Current Accounts -
    4d Cash held in Fixed Deposits -
    5a Loans Receivable from Friends and Relatives -
    5b Investment in Govt Bonds -
    5c Provident Fund Contribution to date. -
    5d Insurance Premiums including bonus up to date -
    5e Value of Shares (stocks) including Dividends. Take their market value on the date of calculation -
    5f Government Security Deposits, ADRs, etc -
    5g Investment in Private Chits, Funds, etc -
    5f Other Sources of Wealth -
    6 ZAKAT ON LANDED PROPERTY (2.5%) Estimate Value
    6a Landed Property held as an Investment / Business (Estimate the current Maket Value) -
    6b Zakat on Rentals Coming from Property (After Deducting for all expenses) -
    7 ZAKAT ON BUSINESS (2.5%) ---------- (STOCK-IN-TRADE)
    7a Value of Saleable Stock
    7b Value of Damaged / Dead Stock
    7c Amount Receivable from Credit Sales
    7d LESS: Amount Payable to Suppliers (Credit taken from suppliers for stocking goods)
    7e LESS: Bad Debts
    TOTAL VALUE OF STOCK ( 7a+7b+7C-7d-7e) . -
    8a Capital Balance as per Last balance Sheet
    8b Loans Advanced by you to the Firm as of Date
    8c LESS: Withdrawals made by you during the current Year.
    8d Accumulated Profit from the date of Balance Sheet to this Date (Estimate the Profit Value as it is difficult to get exact figures in the middle of Accounting Year)
    9 ZAKAT ON AGRICULTURAL PRODUCE (10%, 7.5%, 5%) Value of Produce
    9a Produce Dependent on Rain Water - @ 10% of product (crop) in Value or Kind -
    9b Produce totally dependent on Artificial Irrigation like Canal, Tank, Borewell, etc. @ 5% of Produce (crop) in Value or in Kind -
    9c Produce dependent Partially on Rain Water and Partially on Artificial Irrigation @ 7.5% of the produce Value or in Kind -
    Animals/ Birds more than 6 months Old - @ 1 Animal or Bird PER 40 either in Kind or Value thereof. -
    11 GENERAL LIABILITIES - You need to deduct your direct Payables or Liabilities which have not been deducted earlier - Usage of the loan should have been on Zakatable Wealth only.
    11a Loans taken from from Friends / Relatives
    11b Loans Taken from Banks / Institutions
    11c Income Tax / Wealth Tax Payable
    Dear Brothers & Sisters,
    Alhamdulillah, the month of Ramadhan has been bestowed upon us by Allah. ZAKAT is one of the five fundamental pillars of Islam, mandatory on all muslims who are of eligible wealth. Zakat is due from and payable by a person on his wealth (and not his income), which has remained with him/her for one Islamic year.
    It is difficult to calculate the completion of one year on each item of wealth, because purchase dates may vary. To overcome this difficulty, a practical method is to fix a date (e.g. 1st of Ramadhan), compute your total wealth on that date and calculate Zakat, thereon.
    Details of Each Section to be used in conjunction with the Calculation Spreadsheet.
    Zakat on Pure Gold and Gold Jewellery
    Zakat should be calculated at 2.5% of the market value as on the date of valuation (In our case we consider 1st of Ramadhan). Most Ulema favour the Market Value prevailing as on the date of Calculation and not the purchase price.
    Zakat on Precious and Semi-Precious Stones
    There is considerable contention on whether these are to be considered for valuation. In my humble opinion if they have a value, then they calculate towards your wealth, and it is on the wealth that Zakat is mandatory. However please consult with Moulvi, before acting on this section. Most Ulema contend that a diamond is a piece of carbon and its value varies, unlike that of gold or silver.
    One may calculate the Saleable Value of Items-at-hand on the date of Zakat Calculation.
    Zakat on Silver.
    Zakat is to be paid on Silver in Pure form or Jewellery, Utensils, Decorative items and all household items including crockery, cutlery made of silver at 2.5% of the prevailing market rates.
    Zakat on Cash and Bank Balances
    Zakat should be paid at 2.5% on all cash balance and bank balances in your savings, current or FD accounts. The amount technically should be in the bank for one year. Usually it happens that the balance keeps on changing as per personal requirements.
    You may make your best judgement and the best way is to pay on remaining amount on the day of calculation
    Zakat on Loans Given, Funds, etc
    Zakat is payable by you on loans you have given to your friends and relatives. It should be treated as Cash in Hand. You may deduct Loans Payable by you to arrive at the nett present value of your wealth. However, if you are in doubt, on the return of your money, then you may not calculate it as your wealth. You can add it to your wealth, if and when your receive your money.
    Zakat is payable on all Govt Bonds, Public Sector Bond, paid-up Insurance premiums, your paid-up portion of Provident Funds, Govt Bills receivables, etc. Pls remember you need to be aware of what the sharia says about Insurance and other types of investments. It is outside od the scope of this Zakath Calculator.
    Zakat on Landed Property
    Zakat is not payable on personal residential House even if you have more than one and meant for residential purpose only. Also Zakat is not applicable on the value of Property given on rent irrespective of how many. However Zakat is payable on the rental income itself after deducting the maintenance and other expenses.
    However if your intention of holding properties is to sell at a future date for a profit or as an investment, then Zakat is payable on the Market Value of the property. Also, if your intention of holding properties changes in the current year, I.e. from self use to business then you need to pay Zakat on that Property Value.
    Zakat on Business:
    This is for Business Persons only. No matter what business you are into, you've got to pay Zakat on all STOCK-IN-TRADE. The stock must be valued at its Landed Cost Price. If you have any bills receivable (sales given on credit) then you need to add the same towards calculations.
    Deduct the Amounts due to your suppliers and deduct the loans on stock on the date of calculation. Dead Stock should be calculated on scrap value or its saleable value. Damaged stock should also be valued at its scrap value.
    Be honest in the calculations, as ZAKAT is an INSURANCE on your STOCK directly from ALLAH and who better an insurer than Him.
    There is no Zakat on Factory Buildings or any kind of machinery, but there is zakat on products produced in the factory (i.e. finished goods value). Please refer to a competent Moulvi or a scholar who can shed more light on your specific issues.
    Zakat on Partnership Firms.
    Zakat can be paid EITHER by the firm OR separately by the owners. If the firm is not paying, and the partner wants to calculate his share, he should take the amount standing to his capital and loan account as per the last balance sheet. Add his estimated share of profit till the date zakat is calculated.
    This can only be estimated as it is difficult to calculate the exact profit or loss between an accounting year.
    Zakat on Agricultural Product
    Zakat is payable on all Agricultural produce including fruits, commercially grown flowers, vegetables and all types of grains at the harvest time itself. The passing of One year does not apply for agrultural produce. If there are two or more crops on the same land per year, then Zakat has to be paid as many times on the crop, irrespective of the time.
    The Consensus formula for Zakat calculation on Agriculture is as follows:
    On crops dependent purely on rain water it will be 10% of produce, On crops not irrigated through rain water but use Canal Water, Tank Water, Borewell and Open wells, the Zakat is 5% of the produce. For Crops dependent partly on Rain Water and partly on other water, the Zakat applicable would be 7.5% of produce.
    Zakat on Animals
    On all grazing animals like goats, sheep, camel, cows, broiler chickens, the consensus Zakat payable is one animal/bird for every 40 animals owned. However you may wish to give cash in lieu of the animal/bird itself.
    Please consult your local Scholar or Maulvi or Imaam who can guide you to the right direction, or refer to books of Fiqh if you would like to have first hand confirmation of the situation.
    Liabilities Deductions
    If you have any pending tax payable to the govt, as of the date of Zakat Calculation, then the same may be deducted before arriving at the net worth. If you have taken any loans from any person or institution, and if you have not already deducted the same from any of the above sections, then you can deduct your Payables over here. Please be truthful, as Zakat is a sure way of protecting ones wealth if Zakat has been paid on it regularly and fully.
    LOANS taken only for Zakatable-Wealth should be deducted. Cars, Houses, etc are not Zakatable wealth. So any loan taken for these purposes are not to be deducted
    FOOTNOTE: Please note that RIBA in any form is Haram and strictly prohibited. So please stay away from taking Loans on Interests AND Collection of Interests from any body or institution or other forms of RIBA'.

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  • tanveer.shaikh
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    Zakat is the 3rd pillar of Islam and is the determined share of wealth prescribed by Allah S.W.T. to be distributed to the 8 categories entitled to receive it. Zakat as translated from Arabic means growth, multiplicity, fertility, cleansing, full of baraqah. It is an ibadah in terms of wealth. A symbol of Islamic social justice, Zakat cleanses your soul, purifies and grows your wealth while eradicating poverty.

    Zakat in the Quran and Hadith:

    "O you who believe! Spend of the good things which you (legally) earned, and of that which We have produced from the earth for you..." (Al-Baqarah: Verse 267)
    "(The superstructure of) Islam is raised on five (pillars): to utter an attestation of faith, performance of prayer, payment of Zakat, fast of Ramadan and pilgrimage (to Makkah)." (Narrated by Ibnu Umar R.A.)

    Significance of Zakat for the individual:
    • Purifies and promotes assets.
    • Develops gratitude for Allah's bounty.
    • Brings about a sense of peace and well-being.
    Significance of Zakat for society:
    • Minimizes the feeling of envy among those who are less well-to-do.
    • Provides a religiously-approved method of managing the society's economy and finance.
    • Makes it possible for part of the wealth of the rich to be distributed among the poor.

    4 conditions of Zakat:
    1. The person is a Muslim.
    2. The person has full ownership of the wealth.
    3. Nisab is reached: Nisab is the market value of 86 grams of gold.4. Haul is completed: Possession of the assets for one Hijrah year or 355 days.

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  • Zakat means both 'purification' and 'growth' .

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    One of the most important principles of Islam is that all things belong to God, and that wealth is therefore held by human beings in trust.The word Zakat means both 'purification' and 'growth'. Our possessions are purified by setting aside a proportion for those in need, and, like the pruning of plants, this cutting back balances and encourages new growth.

    Zakat is the amount of money that every adult, mentally stable, free, and financially able Muslim, male and female, has to pay to support specific categories people.

    This category of people is defined in surah at-Taubah (9) verse 60: "The alms are only for the poor and the needy, and those who collect them, and those whose hearts are to be reconciled, and to free the captives and the debtors, and for the cause of Allah, and (for) the wayfarers; a duty imposed by Allah. Allah is knower, Wise." (The Holy Qur'an 9:60).

    The obligatory nature of Zakat is firmly established in the Qur'an, the Sunnah (or hadith), and the consensus of the companions and the Muslim scholars. Allah states in Surah at-Taubah verses 34-35: "O ye who believe! there are indeed many among the priests and anchorites, who in Falsehood devour the substance of men and hinder (them) from the way of Allah. And there are those who bury gold and silver and spend it not in the way of Allah. announce unto them a most grievous penalty - On the Day when heat will be produced out of that (wealth) in the fire of Hell, and with it will be branded their foreheads, their flanks, and their backs, their flanks, and their backs.- "This is the (treasure) which ye buried for yourselves: taste ye, then, the (treasures) ye buried!" (The Holy Qur'an 9:34-35).

    It is agreed between Muslims in all the centuries the obligatory nature of paying Zakat for gold and silver, and from those the other kinds of currency.

    Zakat is obligatory when a certain amount of money, called the nisab is reached or exceeded. Zakat is not obligatory if the amount owned is less than this nisab. The nisab (or minimum amount) of gold and golden currency is 20 mithqal, this is approximately 85 grams of pure gold. One mithqal is approximately 4.25 grams. The nisab of silver and silver currency is 200 dirhams, which is approximately 595 grams of pure silver. The nisab of other kinds of money and currency is to be scaled to that of gold, 85 grams of pure gold. This means that the nisab of money is the price of 85 grams of 999-type (pure) gold, on the day in which Zakat is paid.

    When is Zakat Due ? 1. Passage of One Lunar Year: Zakat is obligatory after a time span of one lunar year passes with the money in the control of it's owner. Then the owner needs to pay 2.5% (or 1/40) of the money as Zakat. (A lunar year is approximately 355 days).
    2. Deduction of Debts: The owner should deduct any amount of money he or she borrowed from others; then check if the rest reaches the necessary nisab, then pays Zakat for it. If the owner had enough money to satisfy the nisab at the beginning of the year, then the money increased (in profits, salaries, inheritance, grants...etc.), the owner needs to add the increase to the nisab amount owned at the beginning of the year; then pay Zakat, 2.5%, of the total at the end of the lunar year. (there are small differences in the fiqh schools here) Each Muslim calculates his or her own Zakat individually. For most purposes this involves the payment each year of two and a half percent of one's capital.

    A pious person may also give as much as he or she pleases as sadaqa, and does so preferably in secret. Although this word can be translated as 'voluntary charity' it has a wider meaning. The Prophet said 'even meeting your brother with a cheerful face is charity.'
    The Prophet said: 'Charity is a necessity for every Muslim. ' He was asked: 'What if a person has nothing?' The Prophet replied: 'He should work with his own hands for his benefit and then give something out of such earnings in charity.' The Companions asked: 'What if he is not able to work?' The Prophet said: 'He should help poor and needy persons.' The Companions further asked 'What if he cannot do even that?' The Prophet said 'He should urge others to do good.' The Companions said 'What if he lacks that also?' The Prophet said 'He should check himself from doing evil. That is also charity.'