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Gold Zakat
How is zakat calculated fir Gold as there are making charges and GST tax paid to buy it. If there is a loan also.
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4 Replies
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Gold Zakat
updated 4 months ago
2 Members
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4
Replies
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Zakat on Gold is calculated at 2.5% of its value as at the date fixed for Zakat calculation, provided that it’s value is above Nisab threshold and is not in personal use.
Whatever taxes paid to the government (sales tax, income tax etc.) can be deducted from the Zakat obligation.
Regarding loan amount and Zakat, please see:
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Kindly enlighten me as to what is the exact threshold for zakat on gold. And please clarify that once this threshold is crossed, does all the Gold becomes liable for paying zakat meaning gold upto threshold + the quantity after. And does this zakat has to be paid annually. Kindly clarify
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There are two heads of Zakat which we encounter commonly. One is Zakat on wealth and the second is Zakat on production or Zakat on Earnings.
Zakat on wealth is to be paid once a year at a fixed date, while Zakat on Production is to be paid with every production.
Zakat on Gold kept as savings, falls in the category of Zakat on Wealth, hence to be paid once a year.
Nisab for assets/wealth is the minimum amount below which your state exempts tax or zakat on assets. If your state does not provide a nisab then you can use the standard nisab of 642 grams of silver or equivalent value.
There can be difference of opinion on whether Zakat percentage should be applied on amount only above Nisab threshold or on the whole amount as soon as it crosses the Nisab threshold. Ghamidi Sahab prefers the latter, but this is not something explicitly instituted as Sunnah by the Prophet (Sws).
You may want to read more about the law of Zakat at the following links:
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Suppose i have 100 grams of gold out of which 15 to 20 grams are used sometimes as ornaments and 10-20 grams are for children. At the same time i have a debt of Rs 200000 and soon will have a car loan of Rs 550000. My monthly income is 52000 and have a wife and parents and soon a child inshallah. I’m from India. Can u plz break down zakat for me as per Mohtaram Ghamidi sahabs understanding
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