Ramadan is upon us and it is the time when Muslims across the world pay their zakat(zakah) on their savings.
According to Islamic calendar 2021, Ramadan will likely start from 12 April or 13 April, depending on your location. A lot of people are confused as to how much zakat they should pay since Ramadan is the most befitting time for doing this pious deed. Zakat is one of the major pillars of Islam.
The Concept of Zakat:
Zakat also known as Zakah is a kind of wealth tax that every Muslim is obliged to pay if their wealth meets the nisab(criteria for calculating zakat status of a person). It is a type of wealth tax and every qualifying person must pay 2.5 percent of their entire wealth that is zakable. Zakat can be donated to charity causes or people you know are deserving of it. Most people pay their Zakat in the beginning of Ramadan every year. Allah has mentioned His likeness for people who spend on charity.
How To Calculate Exact Amount You need to Pay
Working out the amount you need pay in Zakat can be tricky on your own. Thanks to various zakat calculators online, you can now easily calculate the exact amount payable. Please note that Zakat is only applicable to you if you meet or exceed the threshold. In order to get a rough idea, the following steps can give you estimate amount you need to pay:
- Calculate cash, non-cash assets that you own. Arrive at a definite figure.
- Calculate everything you owe to persons/companies or institutions. Minus this amount from the total figure.
- Determine the amount and check it against the Nisab value.
- If this amount crosses the threshold of nisab value, calculate the 2.5 percent and this is the amount you need to pay in zakat this year.
Assets-Zakatable(You owe)
Some assets are zakatable while others are not. The assets that qualify as zakatable are:
- Gold/Cash/Silver
- Stocks/Shares
- Property bought with an intention to make profit off.
- Inheritance (in form of gold/cash/property)
Assets-Non-Zakatable(You don't owe)
The assets on which you do not have to pay zakat ever year include:
- Money owed to business against services or in the form of equipment/property.
- House you own but are living in it and do not make any profit off it.
- Any other form of metal other than gold and silver.
- Inherited money that you don't have access to as yet.
When To Pay Your Zakat
Your Zakat becomes payable and due after a year your wealth equaled or surpassed the nisab value. However, zakat can be paid in advance until you are sure you will hold these assets. The best month to pay Zakat is Ramadan since there is a collective effort to help fellow Muslim brothers.
It is also important to note that Nisab value keeps changing and you should calculate your payable zakat amount before 24 hours to find out the exact amount.
Useful Links For Zakat Calculation For Muslims Living in Different Regions
For UK Muslims:
For US Muslims:
For Pakistani Muslims:
For South African Muslims:
For Indian Muslims:
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