How to calculate zakat on gold in Islam?

In a Nutshell: Zakat, one of the five pillars of Islam, is a mandatory act of charity where Muslims who possess wealth above a specific threshold (Nisab) must give 2.5% of it annually to those in need. For gold, Zakat becomes obligatory if it meets the Nisab (equivalent to 87.48 grams of gold) and has been owned for a full lunar year. To calculate Zakat on gold, determine its current market value and multiply that value by 2.5%. Table of ContentsIntroduction Quranic Verses Hadith Opinions of the Sahaba (ra) Opinions of Traditional Scholars How is Zakat Calculated on Gold? Misconceptions Objections FAQs: How is Zakat Calculated on Gold? Conclusion Introduction Zakat, derived from the Arabic word meaning to purify, is a fundamental pillar of Islam. It serves as a means to purify one's wealth, foster social responsibility and support the less fortunate within the Muslim community. While Zakat applies to various forms of wealth, gold holds a unique significance due to its value, stability and potential for growth. Islam provides clear guidelines for calculating Zakat on gold to ensure fairness and transparency. This answer will look at the Islamic principles governing Zakat on gold, how to calculate it accurately and address common misconceptions and objections. if you'd like to make any changes or adjustments to these sections. Once you're ready, I'll need your input on the specific Quranic verses, Hadith and scholars' opinions for the Evidences section.

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Evidences To understand the obligation and calculation of Zakat on gold, we must turn to the primary sources of Islam, as well as the interpretations of revered scholars:Quranic VersesAnd those who hoard gold and silver and do not spend them in the way of Allah - give them tidings of a painful punishment. (Surah At-Tawbah 9:34) O you who have believed, indeed many of the scholars and the monks devour the wealth of people unjustly and avert [them] from the way of Allah. And those who hoard gold and silver and spend them not in the way of Allah - give them tidings of a painful punishment. (Surah At-Tawbah 9:34) And establish prayer and give Zakat, and whatever good you put forward for yourselves - you will find it with Allah. Indeed, Allah of what you do is Seeing. (Surah Al-Baqarah 2:110) They ask you, [O Muhammad], what they should spend. Say, Whatever you spend of good is [to be] for parents and relatives and orphans and the needy and the traveler. And whatever you do of good - indeed, Allah is Knowing of it. (Surah Al-Baqarah 2:215)HadithNarrated Abu Huraira (ra): The Prophet (pbuh) said, Allah has made Zakat obligatory simply to purify your remaining property. (Tirmidhi) Narrated Ali ibn Abi Talib (ra): The Prophet (pbuh) said: If you have two hundred dirhams and a year passes on them, then five dirhams are due on them (as Zakat). There is no Zakat on less than five ounces of gold; if you have five ounces of gold and a year passes on them, then one-twentieth is due on them (as Zakat). (Sunan Abu Dawud) Narrated Aisha (ra): The Prophet (pbuh) said: Zakat is not obligatory on less than five Uqiyas (of silver) and it is not obligatory on less than five camels and it is not obligatory on less than five Awsuq (of grains). (Muslim)Opinions of the Sahaba (ra)Abu Bakr As-Siddiq (ra):Emphasized the continued obligation of Zakat even after the Prophet's (pbuh) passing. Umar ibn Al-Khattab (ra):Established efficient systems for Zakat collection and distribution. Uthman ibn Affan (ra):Expanded the scope of Zakat to include trading assets. Ali ibn Abi Talib (ra):Clarified Zakat regulations on various assets, including gold.Opinions of Traditional ScholarsImam Abu Hanifa (Hanafi school):Zakat is due on gold reaching the Nisab, regardless of whether it's jewelry or not. Imam Malik (Maliki school):Zakat is due on gold jewelry intended for adornment, but generally not on everyday-use items. Imam Shafi'i (Shafi'i school):Zakat is due on most gold, exceptions exist for non-ornamental use. Imam Ahmad ibn Hanbal (Hanbali school):Zakat is due on all gold exceeding the Nisab, including jewelry. Important As you provide the specific quotes, I'll ensure they are meticulously woven into the Evidences section. Next Steps Evidences Input:Please send the exact hadith, Quranic verses and scholarly opinions you'd like incorporated. Please provide them in English translation with their sources so I can verify them and place them precisely. Analysis:Once the Evidences are confirmed, I'll craft the How to Calculate Zakat on Gold? section. Let's continue! How is Zakat Calculated on Gold? The Evidences presented showcase a clear consensus within Islam about the obligation of Zakat on gold meeting specific conditions. Here's a breakdown of how to determine your Zakat payment on gold: 1. Nisab:The Nisab for gold is equivalent to 87.48 grams of pure gold. If you don't own at least this amount of gold, you are not obligated to pay Zakat on it. 2. Lunar Year (Haul):Gold must be in your possession for a full lunar year (approximately 354 days) before Zakat becomes due. This allows for stability rather than fluctuating wealth. 3. Type of Gold:Zakat applies to various gold forms, including: Gold jewelry (with potential exceptions based on scholarly rulings). Gold bullion or coins. Gold in mixed forms (provided the gold content meets the Nisab). 4. Market Value:Determine the current market value of your gold. You can find this online or by consulting a precious metals dealer. 5. Calculation:Multiply the gold's market value by 2.5%. The result is your Zakat obligation. Example:If you own 100 grams of gold and its current market value is