Zakat Calculator-An Easy Way Of Zakat Estimation

People save and invest their money differently. Whatever the means of saving, you must pay zakat yearly if you fulfil the nisab criteria. However, zakat is calculated differently for different investments. Let’s study how to find it out:

• Zakat On Pure Gold & Silver

  Zakat on pure gold and silver is calculated as 2.5% of the current market value. Most ulemas highlight this calculation should be according to the current price, not the purchase price. Pure gold and silver will be considered in any form for zakat evaluation, whether it is  jewellery, decorative item, crockery, cutlery, or other household items.

• Zakat On Precious And Semi-Precious Stones

  Suppose you have some precious stones that you purchased for commercial purposes and are saleable now. Zakat will be obliged for it. Besides, any other precious item will be considered in the zakat evaluation.

• Zakat on Cash and Bank Balances

  2.5% of zakat is obliged on total cash saved for one whole year. It can be cash and bank balances in your savings, current, or FD accounts. Cash can also be business investments, shares, saving certificates, and pensions funded by money in one’s possession.

• Zakat On Pure Gold & Silver

  Zakat on pure gold and silver is calculated as 2.5% of the current market value. Most ulemas highlight this calculation should be according to the current price, not the purchase price. Pure gold and silver will be considered in any form for zakat evaluation, whether it is  jewellery, decorative item, crockery, cutlery, or other household items.

• Zakat on Loans Given, Funds, etc

  You are responsible for paying zakat on any debts you have granted to friends and family members. Consider it to be cash in hand. Your Loans Payable may be subtracted from the Present Net Value of Your Assets. If you are uncertain about the return on your investment, you should not count it toward your wealth. But if and when you receive your money, you can retroactively add it to your fortune.

  All government bonds, public sector bonds, the cash value of takaful policies, your paid-up share of the BC/Committee (Bachat/voluntary contribution) that has not yet been received, government bill receivables, etc., are all subject to zakat payment.

  Remember that you must know what the sharia says regarding  insurance and other investments. This Zakath Calculator cannot be used to calculate it.

• Zakat on Landed Property

  Zakat is not payable on a personal residential House, even if you have more than one, and is meant for residential purposes only. Also, Zakat does not apply to the value of Property given on rent, irrespective of how much. However, Zakat is payable on the rental income itself, which remains till the date of Zakat.

  However, if your intention of holding properties is to sell for a profit or as an investment, then Zakat is payable on the Property’s Market Value on the Zakat date.