We know not all of you failed your math exam, zakat calculations can get a lot confusing and we totally get that. Calculating zakat on money, savings and jewelry is fairly simple. However, things get really twisted when the property is taken into account. The reason for this complication stems from the fact that not all property is zakat-able. There is a categorization that must be taken into account when calculating zakat on your property. In today’s discussion, we are going to talk about this categorization, as well as help you calculate your zakat via an online zakat calculator. Your zakat queries are about to be answered forever, please do pay your undivided attention to what we are about to share with you!
Nisab: A recap
How about we start by revising the basics? Do you recall the threshold limit that defines Nisab? The Nisab is the value of 87.48 grams of gold or 612.36 grams of silver. Because the real world prices change daily, we will avoid talking in any currency’s lingo in this discussion. Coming back to the point, this is the minimum amount any person must before they start searching for calculators to find out how much they should pay in terms of zakat. Once the possession of Nisab for a year at least has been established, all assets are taken into account to calculate the magical number which will spread a smile on someone’s face eventually when you pay zakat!
How to calculate zakat on the property?
Before we jump into the number game, understanding the classification of properties for zakat calculations is necessary. For the sake of convenience, we have discussed this classification system briefly in the following lines of this discussion. Once you have understood which of your properties are zakat-able, calculating the exact amount will become a much easier task. All that you will have to do then is get an estimate of the values and add them to your calculations.
Alright, here is the classification that we mentioned earlier!
These are the properties that are not in the use of the owner. Again, there is a further division of this class into two subclasses i.e. rental and for sale property.
Talking about the rentals first, the revenue that is generated by such properties must also be taken into account, when zakat is calculated. Having trouble understanding that? Let us explain it with the help of an example. Imagine that you earned 1 million PKR from rent on the properties in your possession. Now, zakat in this case is 25,000 rupees, which is exactly 2.5 percent of the overall rent.
Sometimes, one buys land with the intent to sell it in the future. Now, the price at which this land is sold is also Zakat-able. Again, the percentage of zakat remains the same. If you are selling land for a hypothetical price of 10 million rupees, then the 2.5 percent must be paid in Zakat. Zakat on the property, in this case, will be 250,000 PKR. Read this twice before it sinks in proper!
Non Zakat-able property
Muslims do not have to pay Zakat on the property that they buy for their personal use. Here, we are talking about residential, farming, and business properties. All these properties can be bought in any manner and they will still be exempt from zakat. It is pertinent to mention here that if these properties generate revenue, and the revenue is generated for one year until it hits the amount that is necessary to have to pay zakat, well, in that case, zakat will be applicable on this revenue. Sounds a little complicated, right? But once you read it thrice, you will get the meaning alright!
A calculator for your zakat problems!
Just like you find yourself searching for a calculator when the math gets too complicated for you, you need a zakat calculator to accurately calculate your zakat. The good news is that the internet is literally riddled with dozens of such calculators. The bad news, however, is that you cannot trust all of these tools. Multiple reasons like poor interface, complex user experience, and lack of updates form the basis for this reservation. May we suggest a tool that is just perfect for your calculations? We are talking about, of course, the Transparent Hands zakat calculator. It is easy to use, features a simple but interactive interface, and gets the job done every single time! All that a user has to do is enter the values in the right columns and then press calculate! A number will pop up which is the amount of zakat you are due for that year. Quite astute, isn’t it?
You like the calculator but what about the mission?
You don’t know anything to say because you haven’t heard it yet! Well, Transparent Hands is the largest technological platform for crowdfunding in the healthcare sector of Pakistan. Pakistan’s healthcare system needs all the help it can get from NGOs and INGOs, exactly what Transparent Hands has been doing for a decade now. It offers a complete range of free healthcare services including medical and surgical treatments, medical camps, and telehealth facilities to the underprivileged community of Pakistan. The platform provides visibility to underprivileged patients and builds a personal and trusted bond between patients and donors while ensuring complete transparency. It also sets up free medical camps in the rural areas of Pakistan in which, free medical consultation, free medicines, and free diagnostic tests are provided to deserving patients.
If you are inspired by what the organization is doing for the underprivileged sick ones’ in the country, then donating your zakat money to Transparent Hands is the next step you should be taking! Donors from all over the world can use the Transparent Hands crowdfunding web portal and donate through 100% secure payment modes. They could select any patient, fund the treatment and receive regular feedback and updates until the patient has recovered completely.