Zakat on Gold and Silver

Gold Nisab (Minimum Threshold): 85 grams of pure gold (21 karat).

Silver Nisab: 595 grams of pure silver.

Zakat Rate: 2.5% of the total value on the day zakat is due.

Conditions for Zakat to Be Obligatory:

1. The gold or silver must reach the nisab amount.

2. One full Hijri (lunar) year must pass since owning the nisab.

3.The gold or silver must be surplus to the owner’s essential needs, and intended for saving or trade, not for personal adornment.

Amount of Zakat

One-quarter of one-tenth (2.5%) of the current market value of gold on the day zakat is paid.

Zakat on Paper Currency

Zakat is obligatory on paper money (such as cash) if its value reaches the nisab (minimum threshold).

Nisab Standard: The nisab for cash is calculated based on the value of 85 grams of pure gold (21 karat) on that day.

Conditions for Zakat to Be Obligatory:

1. The total amount of money must reach the nisab (equal to the value of 85 grams of 21-karat gold).

2. A full Hijri year must pass since owning that amount.

3. The money must be surplus to basic needs and not owed to others (e.g., debts).

Zakat Amount

2.5% (one-quarter of one-tenth) of the total amount.