Q1)
When calculating our Zakat, do we minus the Nisab amount before calculating the 2.5%? Also, we own some gold jewellery that we are not using. Do we take out the Nisab amount before we calculate Zakat because of that?
No, you do not subtract the Nisab for the Zakat calculation. If you have an amount above the Nisab then Zakat is due on the entire amount.
It is the same case for gold jewellery. You do not subtract the Nisab but pay on the entire amount.
Q2)
Is Zakat Nisab on Capital and Profit or on Profit alone?
This depends on the situation and one’s intention with the capital investment. For example, investments made with the intention of resale are subject to Zakat on their capital value plus any net cash left over on one’s Zakat anniversary. But if an investment (other than money/gold/silver) is bought to hold on to with no intention of resale, then no Zakat is due on the capital. Is there a particular situation you are concerned about? If so, please share the details and I can try to provide a more specific answer for you insha’Allah.
Q3)
I have a student debt and am not earning above the threshold for repayment. I have just over the Nisab for gold and money. Do I have to pay Zakat? Also would like to know how to calculate Zakat to be paid for gold in grams please.
You should ignore your student debt and pay Zakat by simply adding up the value of the gold and money and paying 2.5% of this value.
If you want to pay some of your Zakat with the gold itself then for every 100 grams of gold you should give 2.5 grams.
Approved by Mufti Amjad 7th August 2023
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