Question 1

Should I use the gold or silver Nisab to calculate my Zakat?

Accepted Answer

While both the gold (87.48 grams) and silver (612.36 grams) thresholds are valid, most contemporary Islamic scholars and the State Bank of Pakistan recommend using the silver Nisab for cash and savings. Because the value of silver is much lower than gold today, using the silver Nisab makes more people eligible to pay Zakat, which ultimately benefits the poor and needy to a greater extent.

Question 2

Is Zakat payable on my personal residence or car?

Accepted Answer

No, Zakat is not payable on items you use for your personal living requirements. Your primary residence, the car you drive, your daily household furniture, and personal clothing are all exempt from Zakat calculations, regardless of their market value.

Question 3

How is Zakat calculated on provident funds or pensions?

Accepted Answer

Zakat is generally only due on funds that you have complete access to and control over (ownership and possession). If your provident fund or pension is locked and you cannot withdraw it without penalty or resigning, Zakat is not due on it until it is distributed to you. Once received, it becomes part of your zakatable wealth.

Question 4

Do I pay Zakat on gold jewelry that I wear daily?

Accepted Answer

There is a difference of opinion among schools of thought. The Hanafi school maintains that Zakat is obligatory on all gold and silver jewelry, regardless of whether it is worn daily or kept in a safe. It is considered safer and more cautious to include the weight of all owned gold and silver jewelry in your calculation.

Question 5

Are business inventory and raw materials subject to Zakat?

Accepted Answer

Yes, any goods, raw materials, or inventory purchased with the intention of reselling them for profit are subject to Zakat. You must evaluate them at their current wholesale market value on your Zakat calculation date and include them in your total business assets.

Question 6

Can I give my Zakat to relatives in need?

Accepted Answer

Yes, and it is actually highly encouraged to give Zakat to eligible relatives first, as it fulfills the dual obligation of charity and maintaining family ties. However, you cannot give Zakat to your direct ascendants (parents, grandparents), direct descendants (children, grandchildren), or your spouse.