Zakat calculations:

Zakat, the third pillar of Islam,is a donation that Muslim regard as a mandatory act within their faith. Followers of Islam who have at least a minimum amount of wealth are required to give 2.5% of their liquid assets away to charity each year. 

Muslim should take inventory of their possession and wealth. Once they reach nisab or the threshold, which is the value of 87.48 grams of gold or 612.36 grams of silver, they must pay Zakat. The total amount to be paid is 2.5% or 1/40 of their total savings and wealth.

Zakat calculation step by step:

Your Zakat amount is 2.5% of your net assets. To work out Zakat we need to add up all the things you own,  take away anything you owe to others, which gives us a total figure of your wealth. The Zakat due would be 2.5% of that wealth.

Zakat calculated in Pakistan:

To calculate Zakat, individuals have to add the mandatory value of all accountable assets together. Again, only those assets are accountable that have been in your possession for at least a lunar year. Liabilities are also calculated and subtracted from the total 2.5% is given out of the final sum.

Method of Zakat:

Zakat on wealth is based on the value of all of one's possessions. It is customarily 2.5% of the Muslims total savings and wealth above a minimum amount known as nisab each lunar year, but Islamic scholars differ on how much nisab is and other aspects of Zakat.

Formulas for Zakat:

To calculate Zakat on cash savings, determine the total amount of cash saved over the course of the lunar year and apply the Zakat rate of 2.5%. 

Example:

Let's say you have a total savings amount of 100000 rupees. So, in this example, the Zakat due on your cash savings of 100000 rupees would be 2500 rupees.

How is the Zakat based calculated:

Zakat base is the entity's net worth as estimated for Zakat purposes. Investors and the citizens of the GCC region pay Zakat, a religious wealth tax based on the net worth of the taxpayer, but not the income, which is 2.5% of the net worth of the individuals and 2.5% of the total capital of the resources.

How much is Zakat calculator:

We calculate how much Zakat you have to pay (your Zakatable wealth ×2.5% = total Zakat you owe for the year. 

Example:

This would be calculated as follows 9500×2.5/100= £237.50. Islamic Relief's Zakat  calculator makes the whole process simple and easy.

How to calculate Zakat for kids:

All eligible Muslim must pay 2.5% of the value of their total wealth and savings above the nisab each year. The amount of Zakat that must be paid will vary depending on the individuals income and the value of their applicable possessions. 

To calculate a percentage divide the part (or value ) by the whole (or total value") and then multiply by 100. 

Example:

If you want to know what percentage 20 is of 50, you would divide 20 by 50(0.4) and then multiply by 100 to get 40%.

Here is a more detailed.

1. Identify the "part" and the "whole".The part is the specific value you want to express as a percentage and the "whole" is the total value it relates to.
2. Divide the part by the whole: This gives you a decimal representation of the proportion.
3. Multiply by 100: This converts the decimal to a percentage.

Formula:

Percentage= (Part/Whole)*100

Example:

• What is 20% of 80 ? The part is 20 and the whole is 80.
• Divide 20 by 80: 20/80= 0.25
• Multiply by 100: 0.25×100= 25%

Types of Zakat:

There are 3 types of Zakat.

1. Zakat Fitrah: Zakat Fitrah is an obligation that must be paid once a year at the beginning of the holy month of Ramadan until before the Eid prayer.
2. Zakat Mal.
3. Income Zakat.

Importance of Zakat:

Zakat one of the five pillars of Islam holds great significance both spiritually and Socially. It is a mandatory act of worship and charity that requires Muslims to give a portion ( usually 2.5%) of their accumulated wealth annually to the needy and deserving.

1. Spiritual Purification:

Zakat purifies a Muslim's wealth and soul. The word "Zakat" itself means purification and growth. It cleanses the giver from greed and selfishness, and encourages empathy and gratitude.

2. Obedience to Allah:

Paying Zakat is a direct command from Allah mentioned numerous times in the Quran alongside prayer (Salah). It is a sign of a true believers obedience and submission to God.

3. Economic Justice:

Zakat promotes the fair distribution of wealth in society. It bridges the gap between the rich and the poor and reduces inequality ensuring that everyone's basic needs are met.

4. Support for the needy:

Zakat helps the poor the orphans the widows and those in debt or difficulty. It ensures a society safety net for the less fortunate and strengthen the community.

5. Blessings and increase in wealth:

According to Islam teachings, giving Zakat does not decrease wealth but rather brings blessings and increases it in unseen ways.

6. Social Harmony and brotherhood:

Zakat fosters compassion and unity. When the wealthy support the needy, it reduces envy and resentment promoting peace and brotherhood within the community.

7. Accountability in the hereafter:

Zakat is not just a social duty but a spiritual one. Those who neglect   it are warned in the Quran and Hadith of severe consequences in the afterlife while those who give are promised great reward.

8. Strengthening the Muslim community:

Zakat fosters a sense of unity and brotherhood among Muslims, reminding them on their shared responsibility to care for one another. It promotes generosity and compassion encouraging Muslims to be mindful of the needs of others. Zakat strengthen community bonds by providing a mechanism for mutual support and assistance.

9. Fostering social justice and equality:

Zakat ensures that the needs of the vulnerable and marginalized are met, regardless of their social status or background. It promotes equality by redistributing wealth and reducing disparities fostering a more just and equitable society. Zakat can also contribute to the well being and dignity of those who receive it, helping them to overcome poverty and achieve a better quality of life.

Rules of Zakat:

Zakat, an obligatory charity in Islam, is governed by several key rules. Muslims must meet the theresold (nisab) of wealth, hold it for a lunar year ( hawl) and then contribute 2.5%  of that wealth as Zakat. Zakat is paid annually and can be donated to eligible recipients, including those in need and those working for Islamic causes. 

Key rules of Zakat:

1.Nisab and ownership:

To be eligible for Zakat, an individual must possess wealth exceeding a minimum theresold (nisab). This is typically equivalent to the value of 87.48 grams of gold or 612.36 grams of silver. The wealth must be fully owned by the individual and not be encumbered by debts.

2. Lunar year ( Hawl): 

The minimum theresold of wealth must be held for a full lunar year before Zakat becomes obligatory.

3.Obligatory Donation:

Once the nisab is met and the hawl is completed, a 2.5% donation is required.

4. Eligible Recipients: 

Zakat can be given to individuals in need, the poor, the needy, those in debt, those working for Islamic causes, and those who are traveling.

5. Zakat is paid once a year: 

Once the nisab is met and the nisab is completed. Zakat is paid annually.

6. Assets Eligible for Zakat:

Zakat is typically on assets that have the potential to generate profit, such as gold, silver, cash, business inventory, and livestock.

7. Intention of Zakat:

The donation must be made with the intention of giving Zakat, and generic donations do not count.

8. Who is Eligible to pay Zakat:

Zakat must be paid by any adult Muslim who is of sound mind and whose wealth exceeds the nisab. 

Important consideration:

1. Zakat is not paid on personal necessities:

Clothing, shelter and personal belongings are not subject to Zakat.

2. Parents and children should not pay Zakat to each other: 

However, other poor or needy relatives can be given Zakat contribution.

3. Zakat is a form of purification:

In addition to helping the needy, Zakat purifies wealth.

Example of Zakat:

The standard Zakat rate is 2.5 percent (one-40th) of one's eligible wealth. For example, if one's wealth liable to Zakat is $10,000, the due amount is $250 ( $10,000×2.5%= $250).

Who gives Zakat:

For every sane, adult Muslim who own a certain amount, known as the nisab. She must pay 2.5% of that wealth as Zakat. Eligible Muslims pay Zakat once a year , and it is due as soon as one lunar (Islamic year) has passed since meeting or exceeding the Nisab.

How to calculate ratio:

To calculate a ratio, divide the first quantity by the second quantity. The result can be expressed as a fraction (a/b) or using a colon (a:b), according to Cuemath. For example, if you have 3 apples and 2 oranges, the ratio of apples to orange is 3/2 or 3:2.

More details:

1. Identify the two quantities:

Determine the two values you want to compare.

2. Write the ratio: 

As a fraction:  Place the first quantity as the numerator (top number) and the second quantity as the denominator ( bottom number).

Using a colon: Write the first quantity, followed by a colon (:) And then the second quantity .

3. Simplify (if possible):

Reduce the fraction to it's simplest form by dividing the numerator and denominator by their greatest common factor.

Example:

Problem: In a class of 50 students, 23 are girls and the remaining are boys. Find the ratio boys to girls.

Solution:

Number of boys: 50-23= 27

Ratio of boys to girls: 27/23 or 27:23

Main points:

• Ratios are used to compare the sizes of two quantities.
• The order in which the quantities are placed in the ratio matters.
• Ratios can be simplified to their lowest terms.
• Ratios can be expressed as fractions or using a colon.

Can Zakat be given to non- Muslim :

No, Zakat should not be given to non- Muslims according to the majority of Islamic scholars. Zakat is a religious obligation for Muslims, and the Quran specifies that it's recipients must be within the Muslim community.

Zakat is an obligation:

Zakat is a fundamental pillar of Islam and a means of financial purification for Muslims.

Specific recipient:

The Quran (Surah At-Tawbah 9:60) lists eight categories of people who are eligible for Zakat, all of whom are related to the Muslim community.

Voluntary charity( Sadaqah):

While Zakat is for Muslims, Islam encourages voluntarily charity (Sadaqah) to anyone, regardless of faith.

Exception:

Some scholars,like ibn Al Munzir or ibn Al Qudhama, suggest that Zakat can be given to non- Muslims who are seeking to convert to Islam.

Conditions of Zakat:

The four conditions for Zakat are that the giver must be a Muslim, the wealth being given must reach the minimum threshold or nisab the wealth must be held for a full lunar year, and it must be given to eligible Zakat recipient.

Elaboration: 

1. The giver must be a Muslim:

Zakat is a religious obligation for Muslims, similar to the five daily prayers.

2. The wealth must be reach the minimum threshold (nisab):

The nisab is the minimum amount of wealth that must be owned to be obligated to pay Zakat. This theroshold is typically defined as the value of a certain amount of gold or silver.

3. The must must be held for a full lunar year:

The wealth must be owned and in the possession  of the individuals for a full lunar year before Zakat is due.

4. The wealth must be given to eligible recipients:

Zakat is Must be distributed to those who are in need, including the poor, the needy those in debt, those who hearts need reconciliation, and those who are employed to administer Zakat.

Benefits of Zakat:

Receiving Zakat purifies the heart of the recipient from envy and hatred  of the rich and prosperous and fosters in him a sense of good will towards his fellow brothers who although they are better off, have shared their wealth with him for the sake of Allah the Almighty.

1. Zakat cleanses a Muslims soul, enabling them to get rid of greed, stingless and th pursuit of worldly pleasures.

2. When Muslims pay out their share or Zakat, the hearts of the poor and the needy are given hope and are empowered.

3. Zakat is a sure and highly effective way to combat and ultimately eradicate poverty and reduce hunger.

4. Zakat strengthen the feeling of mutual care and social solidarity  among Muslims, because it helps to meet the needs of all in society.

5. Zakat helps the efforts of Islamic advocacy throughout the world. It makes Muslims better aware of what their faith requires of them and shows non-muslims the merits of Islam and the Islamic way of life.

Why Zakat is so important:

Muslim's sew wealth as ultimately belonging to Allah, and giving Zakat helps to make people more equal. Helping one another is also seen as helping Allah. Zakat donations help Muslims to purify their souls by not being greedy. It is said that the giver of the money will receive a hundred fold back in the afterlife.

How to calculate Fitrah:

The amount due is traditionally measured as one saa (approximately 2.6-3kg) of staple good such as dates, barley wheat, or rice. Alternatively, it's monetary equivalent can be given if food distribution is impractical.

Benefits of Zakat:

Zakat is one of the five pillar of Islam, is a form of almsgiving and social welfare. It's primary purpose is to purify wealth and redistribute it in society to reduce inequality.

Social Benefits:

1. Reduces poverty and inequality:

Zakat provides direct support to the poor and needy, helping meet basic needs like food, shelter and Education.

2. Promotes social solidarily:

By assuming less fortunate members of society, Zakat fosters unity, compassion and mutual care among communities .

3. Discourages hoarding of wealth:

Encourages circulation of wealth, ensuring it does not remain concentrated among the rich.

Spiritual benefits:

1. Purifies the soul and wealth:

The word "Zakat" itself means purification. It cleanses tha giver from greed and materialism and purifies their wealth in a spiritual sense.

2. Increases gratitude and humility:

Paying Zakat reminds individuals of their blessings and promotes gratitude.

3. Brings Barakah:

It is believed that giving Zakat increases blessings in ones wealth and life.

Religious benefits:

1.Obedience to a pillar of Islam:

Fulfilling Zakat is a demonstration of faith and obedience to Allah's command's.

2. Reward in the hereafter:

Zakat is heavily rewarded in Islam. It is considered  a form.of worship and a means of earning Allah's Mercy and forgiveness.

Economic beliefs:

1. Stimulates economic activity:

Helps inject liquidity into the economy by empowering people to spend, invest or start businesses.

2. Reduces government burdens:

When the community supports it's poor through Zakat, it reduces dependency on state welfare systems.

3. Promotes financial accountability:

Muslims calculate Zakat annually, which encourages better financial planning and awareness.

Principles of Zakat calculate:

The calculation of Zakat is based on several core principles rooted in Islamic teachings to ensure fairness, justice and spiritual growth. 

1. Intention (Niyyah):

• Zakat must be given with sincere to fulfill a religious obligation.
• It is an act of worship, not just charity or tax.

2. Nisab ( minimum threshold):

• Zakat is only obligatory if a Muslims wealth reaches or exceeds a certain minimum amount (nisab).
• Nisab is equivalent to the value of 87.48 of gold and 612.36 grams of silver, based on current market rates.
• Wealth must say above the nisab for one full lunar year.

3. Hawl (one lunar year):

• Zakat is due after one full lunar year has passed on the wealth that exceeds nisab.
• Exception:For agricultural produce or buried treasure (rikaz), Zakat is due immediately.

4. Applicable wealth:

Zakat is due only on specific types of wealth, such as:

• Cash ( in hand or bank)
• Gold and silver .
• Business inventory and profits.
• Investments ( stocks, mutual funds etc.)
• Rental income.
• Livestock and agricultural produce.

5. Fixed rate (usually 2.5%):

• The standard rate for most Zakatable wealth 2.5%.
• Different rates apply for agricultural produce, livestock and minerals.

6. Deductible liabilities:

• Short term debts or immediate liabilities can be deducted from total wealth.
• This ensures Zakat is only paid on net (actual) wealth.

Conclusion :

The calculation of Zakat, one of the five pillars of of Islam, is a vital practice that ensures wealth is purified and redistributed to support those in need. It is typically calculated as 2.5% of a Muslim's eligible assets that have been held for one lunar year and exceed the nisab theroshold based on the value of gold or silver. Prophet Zakat calculation savings, business assets, investments, and debts. By fulfilling this obligation accurately and sincerely.