zakat on Gold

• Zakat is obligatory gold and silver jewelry and women's jewelry. Zakat issued on gold depends on whether gold is used or stored which nisab and haul.

The compulsory Zakat Gold Category

i) Gold unused

• Gold unused means that gold is stored, used or not used even once in a year either in its original or made jewelry.

ii) Women's Gold Jewelry

• Gold either worn (as jewelry kosher) occasionally or continuously within a year no Zakah is due on it but, if it exceeds uruf (excluding precious stones or the like).

• Uruf is a local user limit allowed and uruf vary by state.

Zakat on Gold Calculation Method

i) Gold unused (85g)

  Zakat gold = gold value x 2.5%

example calculations

The price of gold per gram = RM135.35

Gold Weight = 100gm

Gold value = RM135.35 x 100gm

                                             = RM13,535

Zakat Emas = RM13,535 x 2.5%

                                             = RM338.38

ii) gold used is not subject to zakat, but exceed the current uruf (850g)

    Gold is used i = 1000 grams

   Uruf current = 850 grams

   Zakat imposed = 1000 grams - 850 grams

                                           = 150 grams x market price x 2.5%

Nisab and rate Silver

• consensus of scholars have established nisab silver alms of five auqiyah equivalent to 40 dirhams (5 x 40 = 200 dirhams) which is equivalent to 595 grams. (A auqiyah - 119 grams)

• The method of calculating Zakat Silver:

Perak Perak Zakat = value x 2.5%

• Example Calculation of Zakat Silver:

Silver price per gram = RM3

Silver weight = 1000 grams

Perak Zakat = RM3 x 1000 grams x 2.5%

                                         = RM75

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