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Zakat Calculator

1. Zakat on Pure Gold and Gold Jewellery

Zakat should be calculated at 2.5% of the market value as on the date of valuation (In our case we consider 1st of Ramadhan). Most Ulema favour the Market Value prevailing as on the date of Calculation and not the purchase price.

A Reduction of 2% from the weight of Jewellery can be allowed towards studded stones jewellery & 25% from the weight of KUNDAN Jewellery.

Weight (grams) Price (per gram) Estimated Value Zakat Payable
24 Carat Gold/Jewelry
22 Carat Gold/Jewelry
18 Carat Gold/Jewelry
Other Gold Valuables. (Please insert the Current Estimated Value)

2. Zakat on Precious and Semi-Precious Stones

There is some contention on whether these are to be considered for valuation. In my humble opinion if they have a value, then they calculate towards your wealth, and it is on the wealth that Zakat is mandatory.

One may calculate the saleable value of Items at hand on the date of Zakat Calculation.

Estimated Value Zakat Payable
Calculate the nett Market Value of the Precious stones like Diamonds, Rubies, Etc. and add them to the Estimated Value Column

3. Zakat on Silver

Zakat is to be paid on Silver in Pure form or Jewellery, Utensils, Decorative items and all household items including crockery, cutlery made of silver at 2.5% of the prevailing market rates.

Weight (grams) Price (per gram) Estimated Value Zakat Payable
Include Household Silver Utensils, Artefacts, and Jewelery. For Utensils, usually the silver is 90% pure so take 90% of the total weight

4. Zakat on Cash and Bank Balances

Zakat should be paid at 2.5% on all cash balance and bank balances in your savings, current or FD accounts. The amount technically should be in the bank for one year. Usually it happens that the balance keeps on changing as per personal requirements.

You may make your best judgement and the best way is to pay on remaining amount on the day of calculation

Estimated Value Zakat Payable
Cash in Hand
Cash in Bank in Savings Accounts
Cash in Bank in Current Accounts
Cash held in Fixed Deposits

5. Zakat on Loans Given, Funds, etc

Zakat is payable by you on loans you have given to your friends and relatives. It should be treated as Cash in Hand. You may deduct Loans Payable by you to arrive at the nett present value of your wealth.

Zakat is payable on all Govt Bonds, Public Sector Bond, paid-up Insurance premiums, your paid-up portion of Provident Funds, Govt Bills receivables, etc.

Estimated Value Zakat Payable
Loans Receivable from Friends and Relatives
Investment in Govt Bonds
Provident Fund Contribution to date.
Insurance Premiums including bonus up to date
Value of Shares (stocks) including Dividends. Take their market value on the date of calculation
Government Security Deposits, ADRs, etc
Investment in Private Chits, Funds, etc
Other Sources of Wealth

6. Zakat on Landed Property

Zakat is NOT payable on personal residential House even if you have more than one and meant for residential purpose only. Also Zakat is NOT applicable on Property given on rent irrespective of how many. However Zakat is payable on the rental income derived from any property.

If your intention of holding properties is to sell at a future date for a profit or as an investment, then Zakat is payable on the Market Value. Also, if your intention of holding properties changes in the current year, i.e. from self use to business then you need to pay Zakat on that Property Value

Actual Value Zakat Payable
Landed Property held as an Investment / Business (Estimate the current Maket Value) Annual Rental Income Derived

7. Zakat on Business

This is for Business Persons only. No matter what business you are into, you've got to pay Zakat on all STOCK-IN-TRADE. The stock must be valued at its Landed Cost Price. If you have any bills receivable (sales given on credit) then you need to add the same towards calculations.

Deduct the Amounts due to your suppliers and deduct the loans on stock on the date of calculation. Dead Stock should be calculated on scrap value or its saleable value. Damaged stock should also be valued at its scrap value.

Be honest in the calculations of your Zakat.

There is no Zakat on Factory Buildings or any kind of machinery, but there is Zakat on products produced in the factory (i.e. finished goods value). Please refer to a competent Sheikh or scholar who can shed more light on your specific issues.

Actual Value Zakat Payable
Value of Saleable Stock
Value of Damaged / Dead Stock
Amount Receivable from Credit Sales
LESS: Amount Payable to Suppliers (Credit taken from suppliers for stocking goods)
LESS: Bad Debts

8. Zakat on Partnership Firms

Zakat can be paid EITHER by the firm OR separately by the owners. If the firm is not paying, and the partner wants to calculate his share, he should take the amount standing to his capital and loan account as per the last balance sheet. Add his estimated share of profit till the date zakat is calculated.

This can only be estimated as it is difficult to calculate the exact profit or loss between an accounting year.

Estimated Value Zakat Payable
Capital Balance as per Last balance Sheet
Loans Advanced by you to the Firm as of Date
LESS: Withdrawals made by you during the current Year.
Accumulated Profit from the date of Balance Sheet to this Date (Estimate the Profit Value as it is difficult to get exact figures in the middle of Accounting Year)

9. Zakat on Agricultural Product

Zakat is payable on all Agricultural produce including fruits, commercially grown flowers, vegetables and all types of grains at the harvest time itself. The passing of One year does not apply for agrultural produce. If there are two or more crops on the same land per year, then Zakat has to be paid as many times on the crop, irrespective of the time.

The formula for Zakat calculation on Agriculture is as follows:

On crops dependent purely on rain water it will be 10% of produce, On crops not irrigated through rain water but use Canal Water, Tank Water, Borewell and Open wells, the Zakat is 5% of the produce. For Crops dependent partly on Rain Water and partly on other water, the Zakat applicable would be 7.5% of produce.

Value of Produce Zakat Payable
Produce Dependent on Rain Water - @ 10% of product (crop) in Value or Kind
Produce totally dependent on Artificial Irrigation like Canal, Tank, Borewell, etc. - @ 5% of Produce (crop) in Value or in Kind
Produce dependent Partially on Rain Water and Partially on Artificial Irrigation - 7.5% of the Produce Value or in Kind

10. Zakat on Animals

On all grazing animals like goats, shee, camel, cows, broiler chickens, the consensus Zakat payable is one animal/bird for every 40 animals owned. However you may wish to give cash in lieu of the animal/bird itself.

Please consult your local Scholar who can guide you to the right direction, or refer to books of Fiqh if you would like to have first hand confirmation of the situation.

Total Value Zakat Payable
Animals/ Birds more than 6 months Old - @ 1 Animal or Bird PER 40 either in Kind or Value of the same.

11. Liabilities Deductions

If you have any pending tax payable to the govt, as of the date of Zakat Calculation, then the same may be deducted before arriving at the net worth. If you have taken any loans from any person or institution, and if you have not already deducted the same from any of the above sections, then you can deduct your Payables over here. Please be truthful, as Zakat is a sure way of protecting ones wealth if Zakat has been paid on it regularly and fully.

Total Value Zakat Payable
Loans taken from from Friends / Relatives
Loans Taken from Banks / Institutions
Income Tax / Wealth Tax Payable