Category:

Fiqh (Jurisprudence)

Date:

5 Apr 2024

Location:

Jeddah

Answered By:

Sheikh Yusuf

Answer:

Zakat is a mandatory form of charity in Islam, representing 2.5% of one's wealth above a certain threshold (Nisab). Here's a comprehensive guide to Zakat calculation: Types of Wealth Subject to Zakat: 1. Gold and Silver 2. Cash and Savings 3. Business Inventory 4. Agricultural Produce 5. Livestock 6. Investments and Stocks Calculation Process: - Determine total wealth - Subtract essential living expenses - Check if remaining wealth exceeds Nisab - Calculate 2.5% of eligible wealth Nisab Thresholds: - Gold: 85 grams - Silver: 595 grams - Cash Equivalent: Current market value of gold/silver Exemptions: - Personal assets (home, furniture, personal items) - Tools of trade - Wealth used for essential needs Distribution Guidelines: - Zakat can be given to: 1. Poor 2. Needy 3. Zakat collectors 4. Those in debt 5. Travelers in need 6. Those working to collect/distribute Zakat 7. New Muslims 8. For freeing slaves Recommended Practices: - Annual calculation - Transparent distribution - Prioritizing local community needs