Calculation for zakat in 6 easy steps for the Muslims

Do you know why Calculation for zakat is so important? Zakat is one of Islam’s five pillars, a religious duty for every Muslim with the minimum amount of money.

Calculating zakat involves several conditions and criteria that require accuracy and attention to ensure that zakat is paid correctly. It is an important step towards achieving social justice and purifying wealth, which makes understanding how to calculate it essential for every Muslim. You can also read about Tajweed For Kids: How To Simplify Tajweed Rules For Kids

Table of Contents

How to Calculate Zakat Correctly According to Islamic Law

1. Understanding the Terms and Conditions:

Calculating Zakat requires understanding several conditions to ensure that it is paid according to the legal texts.

2. Obligation of Zakat:

Zakat is obligatory for every Muslim who owns the minimum amount of money or assets subject to Zakat.

A full Hijri year must have passed since reaching the minimum amount.

3. Types of assets subject to Zakat:

Zakat includes cash, gold, silver, commercial goods, and livestock.

The percentages vary according to the type of asset.

4. Zakat rate on cash:

Zakat on cash is equivalent to 2.5% of the total amount if it reaches the minimum amount.

5. Determining the minimum amount (Nisab):

The assets are compared to the current value of 85 grams of gold or 595 grams of silver.

The amount equivalent to one of these two amounts is the minimum amount.

6. Calculating Zakat:

Once the minimum amount is reached, Zakat is calculated by paying 2.5% of the money or according to the legal percentages approved for each type of property.

7. Organising assets and documenting funds:

It is important to organise assets and document available funds to avoid errors in calculating Zakat.

8. Directing Zakat to the deserving categories:

Zakat must be directed to the categories specified in the Holy Quran, such as the poor and needy.

9. Using experts or specialised applications:

Experts or specialised applications can be used to ensure the accuracy of the calculation for zakat and the integrity of the procedures.

This fully enhances the commitment to this duty.

Step-by-step guide to calculating Zakat for Muslims

List the assets on which Zakat is due:
This includes cash, gold, silver, stocks, and trade goods.
Add up the total value of these assets to prepare the calculation for zakat.

Deduct the outstanding debts:

Calculate the money remaining after deducting any debts or financial obligations due.
Zakat is only imposed on the net money after deduction.
Calculate the legal percentage:

Subtract 2.5% of the total value of the assets that have reached the Nisab.

You can use a calculator or specialised applications to facilitate the calculation for zakat.

Distributing Zakat to those who deserve it:

Direct Zakat to the categories specified in the Holy Quran, such as the poor and needy.
Ensure that it is distributed on time and not delayed.

Annual follow-up:

Organise the calculation for zakat on an annual basis to facilitate follow-up and ensure compliance.
Shariah advisors can be consulted to ensure accuracy and full compliance with Islamic law.

Common Mistakes to Avoid When Calculating Zakat

1. Not knowing the nisab:

Not knowing the amount of the legal nisab is a common mistake, which leads to not paying Zakat correctly.
It is important to ensure that the money or assets have reached the nisab before starting the calculation for zakat.

2. Not calculating all assets:

Some individuals neglect to calculate certain assets such as gifts, inheritance, or invested money.
All assets on which Zakat is due must be collected to ensure accurate calculation for zakat.

3. Not deducting outstanding debts:

Many people forget to deduct debts and obligations from the total assets.
Debts owed must be deducted to determine the net amount on which Zakat is calculated.

4. Delaying the payment of Zakat:

Delaying the payment of Zakat after calculating it can lead to missing the opportunity to distribute it on time.
It is preferable to pay Zakat immediately after completing its calculation for zakat to avoid delaying it.

5. Neglecting the legal percentage:

Some people make mistakes in calculating the required percentage, such as believing that it is higher than 2.5% for cash.
The specified percentages must be verified according to the type to ensure the accuracy of the calculation for zakat

6. Not paying attention to those who are entitled to zakat:

Distributing zakat inaccurately or to undeserving categories is a common mistake.
It must be ensured that zakat is given to the deserving categories according to what is stated in the Holy Quran.

7. Not following up on changes:

Not updating information about assets or debts periodically leads to an inaccurate calculation for zakat every year.
It is preferable to organise the calculation for zakat annually to ensure compliance with the correct conditions.

Calculating Zakat: How much you should pay annually

Identify your financial assets subject to Zakat.
Check that the legal threshold (85 grams of gold) has been reached.
Calculate 2.5% of the total value.
Deduct outstanding debts.
Make sure to pay Zakat on time.
Follow the calculation for zakat system annually to ensure compliance.

The importance of calculating Zakat accurately for Muslims

1. Compliance with Allah’s command:

Accurately calculating Zakat is a religious duty that Muslims are obligated to.

Paying Zakat is one of the basic matters that Allah has imposed on Muslims.

2. Achieving social justice:

Accurately calculating Zakat contributes to the distribution of wealth among the segments of society.

It contributes to reducing poverty and achieving social balance by supporting the needy.

3. Developing the spirit of cooperation:

Calculating Zakat encourages cooperation among members of society, as the needy and deprived are supported.

It enhances the values of altruism and solidarity among Muslims.

4. Purifying money:

Calculating Zakat is a means of purifying money from impurities, which leads to its blessing.

It contributes to enhancing lawful livelihood and increasing the blessing of money.

5. Excellence in this world and the hereafter:

Zakat has positive effects on the individual and society and leads to rewards in the hereafter.

A Muslim works to develop his real wealth by adhering to calculation for zakat and achieving Allah’s pleasure.

6. Affirming the Islamic identity:

Adhering to calculation for zakat reflects the Muslim’s commitment to his religious identity.

Helps spread awareness of the importance of Zakat in daily life.

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In conclusion, accurately calculating Zakat is essential to fulfilling religious commitment and promoting the values of cooperation and social justice. Muslims should organise their finances and follow up on the calculation for zakat annually to ensure that assistance is provided to those in need according to Islamic law.

FAQs On How to Calculate Zakat

What is Nisab?

Nisab is the minimum amount of money that a Muslim must have to be obligated to pay Zakat, equivalent to 85 grams of gold or 595 grams of silver.

How is Zakat calculated?

Zakat is calculated by adding up financial assets, subtracting debts, and then calculating 2.5% of the remaining amount that has reached the Nisab.

Does Zakat include non-cash assets?

Yes, Zakat includes non-cash assets such as gold, silver, stocks, and real estate, according to Sharia conditions.

What happens if you are late in paying Zakat?

Delaying the payment of Zakat can lead to missing the opportunity to distribute it to those in need, so it is preferable to pay it in a timely manner after calculating it.

Sharia