Calculation of Zakat (زکوٰة) in 2024

Calculation of Zakat (زکوٰة) in 2024

calculation of Zakat in 2024

Each year, Muslims who possess wealth above a certain amount have to give some part of it as Zakat. It creates a flow of wealth from rich to poor and maintains balance in society. In modern times, it can be a bit challenging to calculate how much Zakat one owes. This guide on the calculation of Zakat in 2024 will help you do so.

Who Has To Pay Zakat (2024 زکوٰة)?

Individuals that have wealth equivalent to or more than 3 ounces or 85.04 grams of gold are eligible to pay Zakat. For an asset to be accountable in the calculation, it must be held for at least one full lunar year.  

Rates of gold fluctuate throughout the year and Zakat is usually paid in the form of cash. Hence, Zakat donors need to know the updated prices of gold to calculate Zakat. Transparent Hands’ Online Zakat calculator uses the latest rates to provide an accurate amount.

The nisaab or Nisab(The minimum amount needed to pay zakat) for the year 2024 is approximately PKR. 114,713 which is approximately(USD 410.72) and if you have cash or assets more than this amount then you can calculate and pay zakat here.

Calculate your Zakat in 2024 Now

Accountable Assets in Zakat

Assets that are accountable for Zakat vary between different schools of thought.

Calculation of Zakat In Fiqh-e-Hanafi

As per Fiqh-e-Hanafi metals that are eligible for Zakat include gold and silver. Jewelry made up from platinum or any other metal is spared from the calculation. This is because the two mentioned metals have intrinsic monetary value.

Other assets that need to be accounted for in calculations include cash at home, cash in bank accounts, bonds, investment certificates, shares, money lent to others and purchased stocks.

Calculation of Zakat In Fiqh-e-Jafria

In Fiqh-e-Jafria Zakat is obligatory on nine objects which include:

  • Silver
  • Gold
  • Cows
  • Sheep
  • Goats
  • Camels
  • Wheat
  • Barley
  • Dates
  • Raisins

Since cash is not included in the list, banks do not deduct Zakat from account holders belonging to Fiqh-e-Jafria.

Calculation of Zakat

In order to calculate Zakat, individuals have to add the monetary value of all accountable assets together. Again, only those assets are accountable that have been in your possession for at least a lunar year. Liabilities are also calculated and subtracted from the total and 2.5% is given out of the final sum.

Example

Let’s assume you have 100g of gold, 5 lacs in cash, lend PKR 1 lac to someone, and owe 50,000 PKR to someone else. This is how you would calculate the Zakat:

Total Assets

1g of 22 Karat Gold = 9,869.51

100g of 22 Karat Gold = 9869510

Cash = 500,000

Loan to others = 100,000

Cumulative Assets = 10,469,510

Zakat = Cumulative Assets – Liabilities

10,469,510 – 50,000 (amount you owe in loan) = 10,419,510

10,419,510 is the monetary value of the total asset that you own. Now the owed Zakat is 2.5% of this amount and that will be 260487.75.

Calculate Zakat using our Online Zakat Calculator 

 

Can Taxes Be Subtracted from Owed Zakat

Taxes are paid to the government to build infrastructure, ensure governance, and help run the country. All the citizens receive the benefits from the infrastructure that is built using these taxes. In contrast, Zakat is paid to the needy who are eligible for it so they can survive in society. Taxes are imposed by the government while Zakat has been made an obligation by God Almighty. Hence, taxes cannot be subtracted from the Zakat one owes.   

Muslim Charities in the US and Canada

Recipients of Zakat (زکوٰة 2024 ) 

Muslim countries around the world have dedicated departments to keeps lists of individuals that are eligible for Zakat. Hence, when the banks deduct Zakat in Pakistan it goes to the Bait-ul-Maal which distributes it to these families. Such a system is not in place in non-Islamic countries and people in these countries have to have give it themselves. These individuals can donate Zakat to:

  • Families with low income
  • Individuals that are in financial trouble, i.e., lack resources for medical treatment.
  • Newly converted Muslims
  • Muslims in debt
  • Muslims in captivity
  • Cause of God
  • People who are traveling with minimal resources
  • People who collect and distribute Zakat (زکوٰة 2024)

Give Zakat to NGOs in 2024

Islamic principles and strict criteria dictate that Zakat must be distributed. Hence, there are special conditions that NGOs have to fulfill in order to become recipients of these donations. These include:

  • The organization should be working for an Islamic cause
  • The administrators of the NGOs should be trustworthy
  • People working for NGOs should not receive salaries from Zakat.
  • NGOs should separate the individuals who are eligible for Zakat and those who are not
  • NGOs should distribute the Zakat as per Islamic principles

Is ‘Transparent Hands’ eligible for Zakat (زکوٰة 2024)?

Transparent Hands is a Pakistan-based NGO that provides free surgical and medical treatments to deserving patients. It abides by all Islamic laws and distributes Zakat to only those individuals who are eligible for it. 

Transparent Hands is a Charitable Organizations Eligible For Zakat 2024 in Pakistan

God Almighty has made Zakat obligatory and promised rewards in the afterlife for those that practice it. Although all religions encourage charitable donations, Islam is the only one that has made it mandatory for wealthy individuals. Zakat donations help thousands of families survive in society and help them cope with financial struggles. It is usually better and more convenient to donate to charitable organizations. Some charitable organizations offer education, food and clean water, while others provide medical treatments. So, please donate to these causes.  

Give Zakat Online in 2024:

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