Who is obligated to pay Zakat?
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A Muslim who is sane, adult (post-puberty), free, and possesses
wealth above the Nisab threshold for a complete lunar year (Hawl)
is obligated to pay Zakat. The wealth must be of a productive
nature — cash, gold, silver, business inventory, and certain
receivables. Personal belongings, your house, car, and clothing
are generally exempt.
Is jewelry gold/silver included in Zakat?
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Most Hanafi scholars (followed by the majority in Pakistan) hold
that gold and silver jewelry used by women is zakatable if it
reaches Nisab. Some scholars exempt jewelry regularly worn for
personal use. It's recommended to consult a trusted Islamic
scholar for your specific situation.
When should Zakat be paid?
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Zakat becomes due after one complete lunar year (354 days) has
passed on wealth that equals or exceeds the Nisab. Many Muslims
choose to pay in Ramadan for extra spiritual reward, but it can be
paid anytime after the Hawl year completes. It must not be delayed
without valid reason.
Can I deduct outstanding loans from my Zakat?
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Yes. Short-term debts (due within the Zakat year) can generally be
deducted from your total zakatable assets before calculating the
2.5%. Long-term loans (like a mortgage) are handled differently —
some scholars allow deducting only the installment due within the
year. This calculator deducts all debts you enter, but consult a
scholar for complex situations.
Is Zakat due on stocks and mutual funds?
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Yes. Most contemporary scholars agree that Zakat is due on the
current market value of shares and mutual fund units held for a
full lunar year (Hawl). For shares held as a long-term investment
(not for trading), some scholars say Zakat applies only to the
zakatable portion of the company's underlying assets — but the
simplified and widely-accepted approach is to pay 2.5% on the
current market value. For money market or income mutual funds,
Zakat applies on the full NAV value. Consult your scholar if you
hold a large or complex portfolio.
The Quran specifies 8 categories of eligible recipients (Quran
9:60): the poor, the needy, Zakat collectors, those whose hearts
are to be reconciled, slaves seeking freedom, debtors, those in
the way of Allah, and travelers in need. Zakat cannot be given to
the Zakat-payer's own dependents or non-Muslims (with limited
exceptions).