Zakat is a religious act of orderly giving to the poor and less favored people by the rich. 

Content:
About ZakatAssets That are eligible for Zakat
Brief Overview of the Assets that are responsible for Zakat
Exempted assets from ZakatExempted assets from Zakat for a business owner
Zakat on Gold or Silver Jewelry
Conclusion

About Zakat

 The third pillar of Islam is Zakat and a compulsory act of reverence for all Islam followers, who understand that all prosperity belongs to Allah (SWT) and have a responsibility to share it with the less favored.

Assets that are Eligible for Zakat :

A Muslim is needed to give Zakat on their benefit and personal money. Thus, essentials like a car or home are excluded from Zakat.

Brief Overview of the Assets that are responsible for Zakat :

  • Cash in savings, at home, or in the bank.
  • The value of the stock that you detain to run a business.
  • The monetary value of Gold and Silver.
  • The value of rental income from owned apartment, property, villas, or cars.
  • Funds that are saved for particular purposes like an investment in property, hajj, or wedding.

Exempted assets from Zakat:

  • Your items like clothing and household appliances.
  •  Bills in the month that you are considering to pay Zakat.
  • Short or long-term loans or business overdrafts.
  • Money is owed to others like debt, mortgage, or loans.

Exempted assets from Zakat for a business owner:

  • The salaries, rates, bills, or rent that is used to run your business.

Zakat on Gold or Silver Jewelry :

  • Jewelry is held at hand as an accumulation of wealth and the owner does not intend to use it.
  • Gold or silver items such as showpieces are used for house decoration and utensils.
  • Ornaments which are in the use of a woman.

Use Our Online Zakat Calculator:

Online Zakat Calculator 2021 gives you a pace by step method to calculate Zakat on your benefits.

Step 1:

Enter the worth of Nisab in your local currency. As stated in Sharia Law, Nisab is the minimum amount a person has for over a year to be required to pay Zakah. You can calculate nisab in terms of each of two Gold or Silver value. For Silver, the normal nisab is 21 ounces of Silver (612.36 grams) or equal in cash.  For Gold, the normal nisab is 3 ounces of Gold (87.48 grams) or its cash equal. 

(Note: check the value of Silver and Gold in your local currency)

Step 2: 

The next step is to add the amount of Gold and Silver that you have own for more than a year and its cost per 10 gram in your local currency. Each type of Gold you own must be added individually as their values are different.

Step 3: 

In this step, add the worth of Cash, stocks, and Properties in your possession for more than a year as Zakat is relevant to them as well.

Step 4: 

In this final step, you require to add your liabilities and debts, which are a charge to you and bills you have to give. These amounts are taking away from your benefits/possessions in the final calculation to determine the Zakah compulsory on you.

Step 5: 

After achieving the steps above, a summary seems which tells you like you are permitted to give Zakat, if you are, the Zakat you have to give appears. The payable Zakat is about 2.5% of your overall possessions. You will also have the choice to print this summary to retain a record of paid Zakat every year.  

The online Zakat Calculator will do the Zakat calculations for you after giving all the information. It’s not wrong to pay more Zakat but paying less than the required amount is unacceptable.

Hence, it is recommended to use our online Zakat calculator to ensure that your Zakat Calculations are 100% error-free.

Conclusion:

Zakat is considerable methods to ask for forgiveness from the Almighty Allah as He has promised to eliminate the minor sins of the Zakat giver, as the Prophet (SAW) said:

“Giving charity wipes away sins just as water extinguishes the fire.” 

Zakat calculations have become much more straightforward than before; we shouldn’t worry about giving our annual Zakat.