Statutory and Sharia Principles of Zakat on Wealth, Gold and Shares
Zakat is the third pillar of Islam and a mandatory religious obligation on eligible accumulated wealth that meets the Nisab threshold and has completed a full lunar year (Hawl).
Zakat Rates and Nisab Standards
- Cash & Liquid Savings: 2.5% on qualifying balances.
- Gold Nisab: 85 grams of pure 24-karat gold (or equivalent value in 21k / 18k).
- Silver Nisab: 595 grams of pure silver.
- Tradable Shares & Business Inventory: 2.5% of market value of tradable assets less immediate operating liabilities.
Frequently Asked Questions
The cash Nisab is equivalent to the current market value of 85 grams of pure 24-karat gold. If your net liquid wealth equals or exceeds this value for one full lunar year, Zakat (2.5%) is mandatory.
Gold acquired solely for lawful personal customary adornment is generally exempt according to the majority of scholars, whereas gold held for investment, savings, or trade is fully subject to 2.5% Zakat.