The amount of wealth which makes one liable for zakÄt is called nisÄb. nisÄb is the threshold line, which separates those who are obligated to give zakÄt from those who are not. In other words, nisÄb is the minimum amount of wealth whose owner is deemed to be wealthy in the conception of SharÄ«’ah and zakÄt is obligatory on him.
ZakÄt is calculated periodically. Each period is one Islamic year long and is called a hawl. A person’s hawl date (on which he calculates his zakÄt every year) is set by the date on which (1) his zakÄtable assets reached the amount of nisÄb for the first time and (2)one full Islamic year after that date, the assets are at least nisÄb value as long as (3) some of the wealth remained throughout the course of this year (i.e. the wealth did not diminish to zero at any point throughout the course of this year). Thereafter, the zakÄt hawl date remains constant on that date every year.
For example: Zaid owns nisÄb amount, $400, on Rajab 1, 1434. He did not own any wealth prior to this. He continues to own some wealth (it did not diminish to zero at any point) throughout the following year. On Rajab 1, 1435, he calculates his wealth again and sees that he owns $450, which is at least nisÄb amount. This date (Rajab 1) becomes the set date on which Zaid calculates his zakÄt hawl every year.
Note: If ones wealth diminishes to zero at any point, the hawl calculation restarts from the point his wealth reaches the nisÄb amount again.
If ones wealth decreases during the course of the hawl, and it increases again to the value of nisÄb by the date of the hawl, the zakÄt must be calculated on the full amount that is possessed at the date of the hawl. Fluctuations in the course of the year are to be disregarded.
For example: A person’s yearly hawl date is Sha’ban 1 and his cash balances are:
Date Cash Balance
Sha’ban 1, 1434 $2,000
Ramadan 1, 1434 $4,500
Muharram 1, 1435 $200
Sha’ban 1, 1435 $2,500
ZakÄt will be payable on the $2,500 at hand on Sha’ban 1, 1435.
Note: ZakÄt is due on whatever wealth is in ones possession on the date of hawl. It is not necessary that any particular asset remains in ones possession for a full year.
The nisÄb of gold and silver fixed by Ras$3;lullÄh (saw) is as follows:
87.48 grams (2.8125 troy ounces) of gold or 612.36 grams (19.6875 troy ounces) of silver or its equivalent amount of cash or trading assets, etc.
As prices changes frequently, the current market price of gold and silver must be used to calculate the dollar amount of nisÄb on the hawl date.
Note: If one has only gold assets, the nisÄb for gold must be used to see if he is liable for zakÄt. Similarly, if one has only silver assets, he is to use the nisÄb for silver. If one has different types of zakÄtable assets, such as cash, merchandise, gold and silver mixed, he must use the lesser of two nisÄb values. This is most beneficial for the poor.
For example: A person has 20 grams of gold, 100 grams of silver and $350 in cash. The dollar value of the gold NisÄb is $3,700 and silver NisÄb is $370. He must combine the value of all his zakÄtable assets and see if it is at least the value of the lesser of the two nisÄbs (silver = $370), then calculate zakÄt on these assets.
The rate of zakÄt which was fixed by Ras$3;lullÄh (saw) is 2.5% (1/40) i.e. 2.5 cents per dollar.
Note: ZakÄt is calculated by subtracting the liabilities due immediately or in the near future. For example: A person has $900, but owes $400 immediately. ZakÄt is due on the remaining $500 (given that it is at least equal to nisÄb amount).
-- Prepared by Darul Ifta, Shariah Board, New York2014-2021 © SBNY - Shariah Board, New York. Privacy Policy | Terms and Conditions
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