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Appendix: Explanations To be used in conjunction with the Spreadsheet on Zakat Calculator Page 1 of 4

Zakat Calculator (Use Only YELLOW cells to fill Values. Please refer to the Appendix Sheet for more explanations on Each Section)

Price/Gm Zakat Payable

1 ZAKAT ON GOLD24 Carat Gold/Jewelry .00 -

22 Carat Gold/Jewelery .00 -18 Carat Gold/Jewelry .00 -

-

2 ZAKAT ON PRECIOUS STONES

-

3 ZAKAT ON SILVER

.00 -

4 ZAKAT ON CASH IN HAND /BANK Actual ValueCash in Hand -Cash in Bank in Savings Accounts -Cash in Bank in Current Accounts -Cash held in Fixed Deposits -

5Actual Value

-Investment in Govt Bonds -Provident Fund Contribution to date. -

-

-

Government Security Deposits, ADRs, etc -

Investment in Private Chits, Funds, etc -Other Sources of Wealth -

6 ZAKAT ON LANDED PROPERTY Estimate Value

-

7 ZAKAT ON BUSINESSValue of Saleable StockValue of Damaged / Dead StockAmount Receivable from Credit Sales

LESS: Bad Debts

Weight inGMS

EstimatedValue

Other Gold Valuables. (Pls insert theCurrent Estimated Value)

a cu a e e ne ar e a ue o ePrecious stones like Diamonds, Rubies,Etc. and add them to the Estimated ValueColumn

Include Household Silver Utensils,Artefacts, and Jewelery. For Utensils,usually the silver is 90% pure so take 90%of the total weight

ZAKAT ON LOANS / INVESTMENTS/

FUNDS/ SHARES, ETCLoans Receivable from Friends andRelatives

Insurance Premiums including bonus upto dateValue of Shares (stocks) includingDividends. Take their market value on thedate of calculation

Landed Property held as an Investment /Business (Estimate the current MaketValue)

LESS: Amount Payable to Suppliers(Credit taken from suppliers for stockinggoods)

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Appendix: Explanations To be used in conjunction with the Spreadsheet on Zakat Calculator Page 2 of 4

Price/Gm Zakat PayableWeight inGMSEstimated

Value

TOTAL VALUE OF STOCK .00 -

8

NETT TOTAL WORTH CALCULATED .00 -

9 ZAKAT ON AGRICULTURAL PRODUCE Value of Produce

-

-

-

10 Total Value

-

11

Loans taken from Friends / RelativesLoans Taken from Banks / InstitutionsIncome Tax / Wealth Tax Payable

TOTAL LIABILITIES .00 .00

TOTAL ZAKAT PAYABLE .00

ZAKAT ON SHARE IN PARTNERSHIPFIRMS

Capital Balance as per Last balanceSheetLoans Advanced by you to the Firm as of DateLESS: Withdrawals made by you duringthe current Year.Accumulated Profit from the date of Balance Sheet to this Date (Estimate theProfit Value as it is difficult to get exactfigures in the middle of Accounting Year)

Produce Dependent on Rain Water - @10% of product (crop) in Value or KindProduce totally dependent on ArtificialIrrigation like Canal, Tank, Borewell, etc. -@ 5% of Produce (crop) in Value or inKindProduce dependent Partially on RainWater and Partially on Artificial Irrigation -7.5% of the Produce Value or in Kind

ZAKAT ON ANIMALS & POULTRY &FISH FARMINGAnimals/ Birds more than 6 months Old -@ 1 Animal or Bird PER 40 either in Kindor Value of the same.

GENERAL LIABILITIES - You need todeduct your direct Payables or Liabilitieswhich are not deducted above

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Appendix: Explanations To be used in conjunction with the Spreadsheet on Zakat Calculator Page 3 of 4

Dear Brothers & Sisters,

Details of Each Section to be used in conjunction with the Calculation Spreadsheet.1 Zakat on Pure Gold and Gold Jewellery

2 Zakat on Precious and Semi-Precious Stones

One may calculate the saleable value of Items at hand on the date of Zakat Calculation.

3 Zakat on Silver.

4 Zakat on Cash and Bank Balances

5 Zakat on Loans Given, Funds, etc

6 Zakat on Landed Property

7 Zakat on Business:

Alhamdulillah, the month of Ramadhan has been bestowed upon us by Allah. ZAKAT is one of the five fundamental pillars of Islam, mandatory on all muslims who are of eligible wealth. Zakatis due from and payable by a person on his wealth (and not his income), which has remainedwith him/her for one Islamic year.It is difficult to calculate the completion of one year on each item of wealth, because purchase

dates may vary. To overcome this difficulty, a practical method is to fix a date (e.g. 1st of Ramadhan), compute your total wealth on that date and calculate Zakat, thereon.The attached spreadsheet is a humble attempt at making the calculation process simple andconsolidated, for all brothers and sisters who are fortunate to be worthy of paying Zakat. If thereare any errors, its purely due to my incomprehension and may be brought to my notice immdtlyby email at ajameel@yahoo.com. Please remember me in your supplications and may Allah giveus all the rewards of both worlds. Aameen.Yours Brother in Islam, Arif Jameel.

Zakat should be calculated at 2.5% of the market value as on the date of valuation (In our case

we consider 1st of Ramadhan). Most Ulema favour the Market Value prevailing as on the date of Calculation and not the purchase price.A Reduction of 2% from the weight of Jewellery can be allowed towards studded stones jewellery& 25% from the weight of KUNDAN Jewellery.

There is some contention on whether these are to be considered for valuation. In my humbleopinion if they have a value, then they calculate towards your wealth, and it is on the wealth thatZakat is mandatory.

Zakat is to be paid on Silver in Pure form or Jewellery, Utensils, Decorative items and allhousehold items including crockery, cutlery made of silver at 2.5% of the prevailing market rates.

Zakat should be paid at 2.5% on all cash balance and bank balances in your savings, current or FD accounts. The amount technically should be in the bank for one year. Usually it happens thatthe balance keeps on changing as per personal requirements.You may make your best judgement and the best way is to pay on remaining amount on the dayof calculation

Zakat is payable by you on loans you have given to your friends and relatives. It should betreated as Cash in Hand. You may deduct Loans Payable by you to arrive at the nett presentvalue of your wealth.Zakat is payable on all Govt Bonds, Public Sector Bond, paid-up Insurance premiums, your paid-up portion of Provident Funds, Govt Bills receivables, etc.

Zakat is not payable on personal residential House even if you have more than one and meantfor residential purpose only. Also Zakat is not applicable on Property given on rent irrespective of how many. However Zakat is payable on the rental income.However if your intention of holding properties is to sell at a future date for a profit or as aninvestment, then Zakat is payable on the Market Value. Also, if your intention of holding

properties changes in the current year, I.e. from self use to business then you need to pay Zakaton that Property Value

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Appendix: Explanations To be used in conjunction with the Spreadsheet on Zakat Calculator Page 4 of 4

8 Zakat on Partnership Firms.

9 Zakat on Agricultural Product

The formula for Zakat calculation on Agriculture is as follows:

10 Zakat on Animals

11 Liabilities Deductions

This is for Business Persons only. No matter what business you are into, you've got to pay Zakaton all STOCK-IN-TRADE. The stock must be valued at its Landed Cost Price. If you have anybills receivable (sales given on credit) then you need to add the same towards calculations.Deduct the Amounts due to your suppliers and deduct the loans on stock on the date of calculation. Dead Stock should be calculated on scrap value or its saleable value. Damagedstock should also be valued at its scrap value.Be honest in the calculations, as ZAKAT is an INSURANCE on your STOCK directly from ALLAHand who better an insurer than Him.There is no Zakat on Factory Buildings or any kind of machinery, but there is zakat on productsproduced in the factory (i.e. finished goods value). Please refer to a competent Moulvi or ascholar who can shed more light on your specific issues.

Zakat can be paid EITHER by the firm OR separately by the owners. If the firm is not paying,and the partner wants to calculate his share, he should take the amount standing to his capitaland loan account as per the last balance sheet. Add his estimated share of profit till the datezakat is calculated.This can only be estimated as it is difficult to calculate the exact profit or loss between anaccounting year.

Zakat is payable on all Agricultural produce including fruits, commercially grown flowers,vegetables and all types of grains at the harvest time itself. The passing of One year does notapply for agrultural produce. If there are two or more crops on the same land per year, thenZakat has to be paid as many times on the crop, irrespective of the time.

On crops dependent purely on rain water it will be 10% of produce, On crops not irrigatedthrough rain water but use Canal Water, Tank Water, Borewell and Open wells, the Zakat is 5%of the produce. For Crops dependent partly on Rain Water and partly on other water, the Zakatapplicable would be 7.5% of produce.

On all grazing animals like goats, shee, camel, cows, broiler chickens, the consensus Zakatpayable is one animal/bird for every 40 animals owned. However you may wish to give cash inlieu of the animal/bird itself.Please consult your local Scholar or Maulvi or Imaam who can guide you to the right direction, or refer to books of Fiqh if you would like to have first hand confirmation of the situation.

If you have any pending tax payable to the govt, as of the date of Zakat Calculation, then thesame may be deducted before arriving at the net worth. If you have taken any loans from anyperson or institution, and if you have not already deducted the same from any of the abovesections, then you can deduct your Payables over here. Please be truthful, as Zakat is a sure

way of protecting ones wealth if Zakat has been paid on it regularly and fully.

FOOTNOTE: Please note that Interest in any form is Haram and strictly prohibited. So pleasestay away from taking Loans on Interests AND Collection of Interests from any body or institution.