WHAT IS ZAKAH
Zakah is one of the Pillars of Islam and an islamic obligation that must be performed once a year. Zakah is not an option it is a compulsory act for all Muslims. It is an act in which one pays 2.5% of their annual savings to those in need. It is a religious duty which washes away impurities from our provision and ensures excess wealth is distributed amongst those in need.
HOW MUCH DO I PAY?
Qamar Charity uses the value of Gold as the standard for the Nisaab, so the minimum current amount is: $3,533.74 before Zakah is due to be paid. For example if a year had passed on this amount you would pay 2.5% of this which would be $88.37 If you had $6,48.061 in wealth/assets saved and a year had passed on it then you would pay $162.00.
Those things classed as your wealth and Assets which are Zakah applicable:
Cash – in the bank or at home and that which is saved for anything specific.
Gold and Silver – The value of it in your local currency according to the Nisaab.
Shares – The value of the shares you own at their market price.
Money owed to you – If it is expected to be repaid.
Your Business – The balance sheet value of the Stock you possess.
Your Properties – Any rental income that’s been saved of the year. The equity value of your investment property portfolio is not included as part of your assets in the Zakat calculation.