Zakat calculation

بسم الله الرحمن الرحيم
“So fear Allah as much as you are able…” (Surah At-Taghabun, 64:16)

General Principle

Zakat is obligatory on wealth that reaches the nisab (minimum threshold) and remains in possession for one lunar year. In the Hanafi school, the nisab is based on the value of 612.36 grams of silver (or 87.48 grams of gold). Paper currency and bank deposits are treated as silver in terms of nisab.

• Agricultural land (used for cultivation, not trade) is not subject to Zakat. However, its produce is subject to Ushr (10% or 5% depending on irrigation) – a separate obligation.
• Gold jewellery (even if used for personal adornment) is Zakatable according to the preferred Hanafi view (Imam Abu Hanifa). The value is calculated at the current market price of the gold content (18k = 75% pure gold).
• Cash and bank deposits are Zakatable if the total wealth (gold + cash + bank) reaches the nisab.

Case 1: Gold (5 Vhari 18k) + Cash (30,000 BDT) + Bank (84,000 BDT) + Agricultural Income (30,000 BDT/year)

Step 1: Determine Zakatable Assets

• Gold: 5 Vhari of 18k gold.
  1 Vhari ≈ 11.66 grams (Bangladeshi standard).
  Pure gold weight = 5 × 11.66 = 58.3 grams.
  Since 18k is 75% pure, the pure gold equivalent = 58.3 × 0.75 = 43.725 grams.
  (Note: Many scholars directly value the jewellery at its market price without converting to pure gold – either method is acceptable as long as the current sale price is used.)
  Assume current gold price in Bangladesh: 18k gold per gram ≈ BDT 7,500 (depending on market).
  Market value of gold = 58.3 × 7,500 = BDT 4,37,250.
• Cash: BDT 30,000.
• Bank: BDT 84,000.
• Agricultural income (30,000 BDT/year): If this income is received as cash and remains unspent at the end of the lunar year, it should be added. If it is already included in the cash or bank figures, do not double count. Here we assume it is separate savings; thus add BDT 30,000 to the cash category.

Total Zakatable wealth = Gold value + Cash + Bank
= 4,37,250 + 30,000 + 84,000 + 30,000 = BDT 5,81,250.

Step 2: Check Nisab

Nisab for silver (612.36 gm) at current silver price (approx BDT 150/gm) = 612.36 × 150 = BDT 91,854.
The total (5,81,250) far exceeds this, so Zakat is due.

Step 3: Calculate Zakat

Zakat = 2.5% of total Zakatable wealth
= 0.025 × 5,81,250 = BDT 14,531.25 (payable after one lunar year).

Note on Ushr: The owner must also pay Ushr on the agricultural produce (10% if rain-fed, 5% if irrigated) at harvest time. This is separate from Zakat.

Case 2: Only Land (4 Bighas) + Gold (5 Vhari 18k) – No Cash, No Bank, No Other Income

Zakatable Assets

Only gold: 5 Vhari (58.3 grams, 18k).

• Nisab of gold alone = 87.48 grams of pure gold.
  58.3 grams of 18k gold contains only 43.725 grams of pure gold – below the gold nisab.
• There is no cash or silver equivalent to combine with.
• The land is not Zakatable, and there is no income to save.

Result: No Zakat is due because the total Zakatable wealth (gold) does not reach the nisab.

Important: If the land produces crops, the owner must pay Ushr (10% or 5% of the crop) at harvest time. This is an obligatory charity but not Zakat al‑Mal.

How to Pay Zakat When There Is No Cash or Savings?

If a person owns Zakatable wealth (e.g., gold above nisab but no liquid cash), the obligation remains. In such a situation:

1. Sell a portion of the gold equal to the Zakat amount (or its value) and give the cash in charity.
   Selling jewellery for Zakat is permissible and does not require selling the whole piece – only enough to cover the 2.5% obligation.
2. Pay in kind – directly give a piece of gold jewellery (weighing 2.5% of the total) to a poor person, provided the poor person can benefit from it.
3. Borrow or arrange cash if possible, but if delaying payment due to hardship, one must pay as soon as cash becomes available.

It is not required to sell agricultural land to pay Zakat, because the land itself is not Zakatable. Only the gold or silver (if above nisab) must be liquidated to fulfill the obligation.

“If someone has gold equal to the nisab but no cash, he must sell some of the gold to pay Zakat.”
(Radd al-Muhtar, 3:225; Fatawa Usmani, 2:357)

Summary of Rulings

| Asset | Case 1 (Zakat Due) | Case 2 (No Zakat) | |-------|-------------------|-------------------| | Gold (5 Vhari 18k) | ₹4,37,250 (value) | Below nisab (no cash to combine) | | Cash + Bank | ₹1,44,000 (incl. land income) | Zero | | Total | ₹5,81,250 > nisab | Below nisab | | Zakat Payable | 2.5% = ₹14,531 | ₹0 (but Ushr on produce) |

References (Hanafi)

• Radd al-Muhtar (Ibn Abidin): 2/295, 3/225 – Zakat on jewellery, combining assets for nisab.
• Fatawa Usmani (Mufti Taqi Usmani): 2/357 – Gold and silver nisab; cash treated as silver.
• Bahishti Zewar (Ashraf Ali Thanwi): Zakat pada – details on jewellery and land.
• Al-Hidayah: Rules of zakat on gold and silver.

May Allah accept your good deeds and grant you ease in fulfilling His commands. If the exact gold price in BDT is known, recalculate accordingly.
والله أعلم بالصواب