Articles on Ramadan

• What did we get from Ramadan?
• Zakat Calculation
• An Initial Guide for Fasting

Zakat Calculation

A Simplified Zakaat Calculation
(Individuals & Businesses)
Part One: Yearly Items: all subject to 2.5%
Zakatable Items Amount Due for Zakaat

Cash on hand and in banks* $______________
+
Shares, stocks, futures, retirement accounts etc., $______________
(including their dividends and returns)
+
Gold, silver, and their certificates (Current price of gold per oz.)** $______________
(Including women’s jewellery acquired for investment not for personal…)
+
Business net worth $______________
Business cash on hand and in banks plus invoices due and Net Inventory +
Other industrial and farming assets $______________
+
Rental Income after expenses and taxes $______________
+
Net value of extra transportation and extra $______________
Other recreational motors, boats, etc,
+
Refundable deposits (e.g. on rented apartments) $______________
+
Borrowed money and assets $______________
-
Debt, loans & Dues $______________

Total amount of above Items $______________
X 0.025

Zakah (= total amount) $______________

Zakaat Recipients (As stated in the Qur’an Chap 9 V. 60):
1. Poor people. 2. Needy people in financial hardship and debt with very limited income such as the Students of knowledge. 3. People who collect Zakaat. 4. People whose hearts are to be reconciled. 5. The captives. 6. Debtors. 7. for the cause of Allah (Education and Da’wah work, programs). 8. The Wayfarer.

(*) All the items must have remained under your possession for 1 year
(**) Gold Nisab is approximately 87 grams and for Silver Nisab approximately 607 grams