Saturday, September 18, 2021

What is Nisab of Zakat?

  Unknown       Saturday, September 18, 2021

Nisab is the bare minimum amount of money (threshold) that a Muslim must have in order to be obligated to pay the zakat tax. The Nisab was established by Prophet Muhammad (SAW) at a rate equal to 87.48 grammes of gold and 612.36 grammes of silver, which was equivalent to 87.48 grammes of gold and 612.36 grammes of silver.

Because we no longer use silver or gold as currency, you must calculate the monetary exchange value of the rates established by the Prophet Muhammad (SAW) in your local currency in order to be accurate. This can be accomplished by looking at the current market price of gold and silver.

Gold and silver are the two values that are used in the calculation of the Nisab threshold.

Nisab Value As Of March/April 2021

Using value of silver (612.36 grams) – approximately £363.13

Using value of gold (87.48 grams) – approximately £3,576.18

The value of silver is used in the Hanafi madhab to determine the nisab threshold and eligibility to pay Zakat. The other madhabs make use of the gold standard.

The gold standard defines the nisab as three ounces of gold (87.48 grammes) or its cash equivalent. This is approximately $4,780.06 for gold on 08 March 2021, but will fluctuate according to gold's market price.

The silver standard defines the nisab as 21 ounces of silver (612.36 grammes) or its cash equivalent. On 08 March 2021, this equates to approximately $503.10.

Common Questions Related to Nisab

Which Standard Gold or Silver should be used to calculate Nisab?

The nisab calculated using the silver standard is significantly lower than the nisab calculated using the gold standard. This is due to the fact that the value of silver has plummeted since the Prophet's lifetime (peace be upon him).

There are advantages and disadvantages to using either nisab value. Many scholars believe that using the silver nisab is preferable because it will increase the amount of charity distributed; however, others believe that using the gold nisab is more similar to the nisab in use during the time of the blessed Prophet (peace be upon him).

However, if your assets are entirely comprised of gold, you must use the gold nisab, and if your assets are entirely comprised of silver, you must use the silver nisab.

When Does Zakat Year Begin?

This will serve as your seed date, and whenever it comes around, you will be required to calculate zakat, regardless of any fluctuations in the amount of wealth you have in your possession at the time.

The only situation in which your seed date will be altered is if you go bankrupt and lose all of your assets and belongings at the same time. If this is the case, your new seed date will begin when you are once again in possession of wealth greater than the nisab level of wealth.

If you are unsure of the date of your seeds, make an educated guess to the best of your abilities.

I possess more than Nisab value but I have immediate living expenses such as rent, food..etc?

There is no limit to the amount of wealth one can accumulate, but if a person must spend money on necessities such as food, clothing, and housing for themselves and their dependents, that money can be deducted from their wealth.

Even if he is left with less money than the nisab, he still does not owe zakat.

My wealth decreased below the nisab value for few months..Do I still need to pay Zakat?

Zakat will be payable as long as you have wealth in excess of the nisab threshold at the start and end of the zakat year, even if your wealth has fallen below the nisab threshold for the majority of the year, according to Islamic law.




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