CalculatorZAKAT CALCULATORNote: All White Fields are Data Entry / Selectable Fields

Date of Calculation19-Jun-15Zakat Due?
Faizan Motiwala: When is Zakat due? A complete year in the Islamic calendar should pass, starting from the very day of the nisab's possession, without any decrease to zero during the year, even if it goes below the nisab. In case of its decrease to zero, the yearly cycle (hawl) starts from the day the nisab becomes complete again. Zakat should be given as soon as possible after it becomes due. It is possible that death may occur and thus lead to failure in fulfilling one's obligations. If a person dies before paying Zakat, then it must be taken from his/her estate.

Usually, the calculation is done on the Value of Zakatable Assets as on 1st RamadhanNISAABBased OnIn TolaIn GramsPurityRate/GmValueSelect for Nisaab CalculationNisaab
Faizan Motiwala: Nisaab is the threshold or line, which separates those who are duty bound togive Zakah from those who are not. In other words, Nisaab is the minimumamount of wealth whose owner is deemed to be wealthy in the conception of Shariah and Zakah is obligatory on him.

For example, one who owns 7.5 Tola gold or 52.5 Tola of silver or its equivalent amount of cash or trading assets etc. is called Sahib-un-nisaab and it is obligatory on him to pay Zakah (i.e. 2.5% of his total zakatable assets) to those who deserve Zakah.

It should be noted that calculating Zakat based on silver prices, as it is now lower in price than gold, is the better choice since it will allow more people to pay Zakat and therefore receive Zakat as well. However, one may base their Zakat calculations on gold prices as well.

Select any one you would want your nisaab to base onGold7.5087.50100.00%3,837.24335,756.33NO0.0Silver52.50612.50100.00%54.0033,074.81YES33,074.81Please Select any ANY One33,074.81CALCULATIONZakat Assets
Faizan Motiwala: Prepare an updated information of your wealth items priced as per the market (actual) value on the effective date

Zakat assets are what you actually own on the Zakat effective date. You have to sum up all wealth items you own.

Some examples are:

Cash: any type of cash ready cash, current accounts, saving accounts, fixed deposits as stated in your bank statement.

Securities: shares, stocks, mutual fund units, bonds and sukuk valuated at the closing price in the stock market. Your current account in a company which you are a partner in.

Saving plans: the surrender value of your saving plans

Gold investments: as per the market value

If there is any amount of money which proposed to be received during the concerned Zakat cycle but not yet happened, then you have to add the expected value to the Zakat assets.

Your personal belongings such as a home or a car are not considered as Zakat assets.

Total Gold Value Without JewelsPurityIn TolaIn GramsTotal in GmsRate/GmValue in RsGold - 24 Karats100%10.0010.00126.673,837.24486,047.47Gold - 22 Karats92%0.00.00.03,837.240.0Gold - 18 Karats75%0.00.00.03,837.240.0Gold - 14 Karats58%0.00.00.03,837.240.0Gold - 12 Karats50%0.00.00.03,837.240.0Gold - 10 Karats50%0.00.00.03,837.240.010.00126.67486,047.47

Total Silver Value Without JewelsPurityIn TolaIn GramsTotal in GmsRate/GmValue in RsSilver100%20.00233.3354.0012,599.93

20.00233.3312,599.93498,647.40

Cash and Cash EquivalentsEntry Line 1Entry Line 2Entry Line 3Entry Line 4Entry Line 5Balance in RupeesCash on hand50,000.0050,000.00Cash
Faizan Motiwala: The amount of cash held, whether in a bank or personally on hand, at the end of the relevant Zakat year will always be subject to Zakat. Moneys lent and advanced are, for Zakat purposes, treated as cash and Zakat must be paid on such loans each year.The Nisab for cash is equivalent to the value of gold or silver (whichever is less). At present Nisab of silver is less, so cash may be calculated according to silver. All the values of Zakat-able assets for the sake of calculation are converted into cash, and based on the fact that nisab is calculated according to the nisabChecking Account400,000.00400,000.00Savings Account0.0Business Bank Account(s)0.0

450,000.000.00.00.00.0450,000.00

Stocks and InvestmentsEntry Line 1Entry Line 2Entry Line 3Entry Line 4Entry Line 5Amount in RupeesStocks and Mutual Funds0.0Shares
Faizan Motiwala: Faizan Motiwala:If shares are purchased with the express intention for resale or capitalgain, then the entire value of the shares is subject to Zakah.If, however, the shares are purchased with a view to holding them as aninvestment and receiving the dividend income, then the following mustbe borne in mind.Ownership of a companys shares confers undivided ownership in theunderlying assets of the company. The holder is a proportionate ownerof the business. All business assets can be classified into two types forthe purpose of Zakah.1. Fixed Assets e.g. Machinery, buildings, Furniture etc.2. Current Assets e.g. cash, stock in trade, receivables etc.Fixed assets are exempt from zakah whereas, current assets are subjectto it. The owner of the shares can deduct from the Zakatable value aproportion equivalent to that of the liabilities and the fixed assets of thecompany. In other words, it is permissible for the owner of the shares inthis case that he does not take into account the liabilities and nonzakatableassets such as plant and machinery etc. The way to ascertainthe proportion of zakatable assets to non-zakatable assets of a companyis to consult the balance sheet and profit and loss account. Thesedocuments are available as part of the companys annual report.Zakah Payable (Z.P) = [Total Assets (T.A) MINUS Fixed Assets (F.A) MINUS TotalLiabilities (L)] DIVIDED BY Total No. of Sharesoutstanding (S.O) MULTIPLIED BY 2.5%.i.e.Z.P = (T.A F.A L) x 2.5 S.O 100

The above mentioned detail is for the one who has the ability andresources to ascertain the exact amount of zakatable assets representedby the shares. However, if the calculation gets complicated forsomebody, then he should consider the entire value of the shares as hiszakatable asset and thus pay Zakah for it. Business Merchandise Inventory0.0Trading Asset
Faizan Motiwala: Trading assets are those, which are purchased with the intention ofresale or capital gain. Consequently, goods that have been purchased forpersonal use and not for the purpose of trade are not subject to Zakah,irrespective of their value.

Similarly, goods (other than gold and silver) originally bought for personal use are not subject to Zakah if the purchaser subsequently intends to sell them for trade and had not intended it at the time of purchase. Once sold, however, their sale price would be subject to Zakah

Likewise, a person may purchase goods for personal use with theintention that if he is able to obtain a profit thereon, he would sell the goodsin which event, no Zakah is payable on such goods. On the other hand, if anasset is not purchased and is owned by some other means e.g. inheritance orgift, then the asset will not become the subject matter of Zakah. In short, trading assets are those that are:(i) purchased and(ii) purchased with the intention of sale.

If any of these two conditions is missing, the asset will not be treated asa trading one and thus will not be subjected to Zakah.

Retirement Plans0.0Retirement Plans
Faizan Motiwala: Fund withdrawals from such plans triggers early withdrawal penalty (in case the funds are withdrawn before one reaches the retirement age) and taxes. Hence, Zakat on retirement plans will only be due when the funds are received. At that time the person must pay the Zakat of all the past years, and not just one year, i.e. ever since he became the owner of Nisab and ever since this money reached that limit. This will require a lot of effort in keeping track of each year's Zakat-able amount until the funds have been withdrawn. Hence, it is advised by the scholars to pay Zakat on the plans yearly, to avoid miscalculations after several years of accumulation.Real Estate (excluding personal residence)0.0Accounts Receivable / Trade Debts0.0Recievables
Faizan Motiwala: Accounts receivable, are treated as cash for Zakat purposes and therefore subject to Zakat, but the trader is only obliged to pay the Zakat on the account receivable in the year in which the account receivable is actually paid. In such a case, the Zakat must be paid not only for the year in which the account receivable was paid but also for each preceding year in which the account receivable was owing. In order to avoid practical problems in calculating the Zakat particularly in the case of traders who carry large account receivables, it is desirable that Zakat be paid each year on the total value of the account receivables. If a bad debt has been recovered and Zakat has not been paid thereon, then Zakat must be paid for the preceding years as wellOther funds (profits, trust a/c, partnerships, etc.)0.0

0.00.00.00.00.00.0

(LESS) Deductible liabilities onlyEntry Line 1Entry Line 2Entry Line 3Entry Line 4Entry Line 5Amount in Rupees?
Faizan Motiwala: Zakat liabilities are your financial obligations. Any obligation which you had satisfied during the concerned cycle requires no more consideration.

Nevertheless, if there is any amount of money that was proposed to be paid during the concerned Zakat cycle but you did not do yet, then you have to add the expected value to your Zakat liabilities.

If you had obtained a personal loan of any type (car, home, cash) then you have to consider the installments that you have to pay during the following Zakat cycle.

You have nothing to do with entire outstanding debt.

Bank Over Drafts0.0Trade Creditors0.0Loans0.0

0.00.00.00.00.00.0

From the Desk of Zakat Pool948,647.40Muhammad Faizan Anis MotiwalaBalance on Which Zakat PayableAs Per Nisaab948,647.40CIMA Finalist, APFA, ACIS, MBA, PGDRate of Zakat2.50%2.50%Feed backs at faizan.anis@live.comZakat Payable23,716.18Zakat Payable (Monthly)1,976.35