Paying zakat is one of the five pillars of Islam. It is the obligatory payment done at the end of 1 lunar year. Payment is made at the end of the lunar year, starting from the day the nisab value was acquired.
The simplest and easiest way to determine the zakat is by using the zakat calculator. Muslims in the UK can go online to search for zakat calculator uk. They simply have to enter the data in required fields. They need to have their bank statements and other documents pertaining to their assets and liabilities on hand when they calculate their zakat online.
These online calculators show the current nisab values. These will also automatically calculated how much zakat will have to be paid based on the information provided for in various categories.
Nisab refers to the minimum amount of threshold of wealth that a Muslim must have before becoming eligible to pay the zakat. Wealth fluctuates throughout the year but the zakat is calculated on the nisabi by the end of the lunar year (full Islamic year)
Gold and silver are the measures used in determining the nisab. Gold measure is at 3 ounces or about 87.48 grams of pure gold. Silver measure is at 21 ounces or about 612.36 grams of pure silver. The cash equivalent of these measures are also used. Cash equivalents will vary, depending on the current market price of these precious metals. A lot of Islamic scholars recommend using the silver measure so that more Muslims will be eligible for the zakat. More Muslims paying the zakat will mean more money will be collected and available for various beneficiaries.
There are different types of assets or wealth subjected to the zakat calculator. UK Muslims will have to take into consideration their cash (in banks, money lent or in hand), pensions, shares, physical silver and gold, money from their property investments and value of crops (if applicable).
Any personal items are not included in the calculations. These include cars, clothing, home, food and furniture.
Calculating the zakat is easy. First, take stock of zakatable assets like gold, business assets, savings, silver and cash. Have all documents pertaining to these assets on hand, which states the value of the possession. Second, have all records on hand pertaining to deductible liabilities such as debts, mortgages, and loans. Next and final step is obtaining the resulting payment via a zakat calculator. UK Muslims basically have to subtract their deductible from their current possessions. The result will be compared to the current nisab. If the value reaches the threshold, 2.5% will be calculated from the net possession. The value will be the zakat payable. If the net value doe snot reach the nisab, the Muslims wealth is exempted from nisab.
Zakatable wealth include the following:
Cash, on hand or in the bank Liquid assets Silver, e.g., jewelries, silver stocks, etc. Gold, e.g., jewelries, gold bars, gold stocks, etc. Equity investments Unit trusts Shares Pensions Fixed assets Properties Business assets Debts owed to the person computing his zakat (except hopeless debts or debts that are very unlikely to be paid)
Deductible liabilities include the following:
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