Arabic: Zakat (زكاة), meaning "purification" or "growth," refers to the obligatory act where Muslims donate a portion of their wealth to purify their possessions and souls.
Religious obligation: All eligible Muslims must pay Zakat annually as an act of obedience to Allah and social responsibility.
Nisab refers to the minimum amount of wealth one must possess to be obligated to pay Zakat. If a Muslim's net wealth remains above the Nisab threshold for one full Islamic lunar year, then Zakat becomes obligatory upon them.
The Nisab threshold is based on Hadith and is traditionally calculated according to the value of gold or silver:
To determine the actual market value of the Nisab, users may multiply the corresponding weight by the current market price of gold or silver.
Net Wealth = (All zakatable assets) – (Permissible deductions/liabilities)
Welcome to the Zakat Calculator Reference Tool provided by TYC Finance. This tool has been carefully developed by the TYC Finance team in Hong Kong based on publicly available information and multiple credible academic sources, combined with real-world application scenarios and examples from abroad. It is designed for educational purposes and aims to assist Muslims in calculating Zakat accurately and fulfilling their religious obligations correctly.
This calculator is provided solely for educational and personal reference purposes. It does not constitute a binding fatwa or financial advice. TYC Finance Limited reserves all rights and accepts no legal liability for the use of this tool.
While we have made every effort to prepare this tool based on credible sources and traditional Shariah principles, due to the complexity of asset structures and the diversity of religious practice, specific situations may require consultation with qualified local Islamic scholars, Imams, or Muftis to obtain appropriate guidance.
Zakat should be calculated based on the Islamic Hijri calendar. On a fixed day each year (e.g. 1st of Ramadan), users are required to assess the market value of all zakatable assets and calculate accordingly; The standard zakat rate is 2.5%.
Zakat should be calculated at 2.5% on all cash balances and amounts in bank accounts.
Zakat should be calculated at 2.5% on all investment assets.
Zakat is not applicable to personal residences, even if you own multiple homes. However, if your intention is to sell for profit in the future or hold as an investment, then Zakat is payable at 2.5% of the market value.
Whatever business you are in, you need to pay Zakat on all your stock. Stock should be valued at landed cost. If you have any bills receivable (credit sales), you need to add them to your calculation.
Zakat can be paid by the firm or by the owners individually. If the firm does not pay and the partner wants to calculate his share, then he should calculate based on the capital and loan account amounts as per the last balance sheet.
For produce dependent on rain water, Zakat is 10% of product (crop) in Value or Kind; For produce using artificial irrigation (like Canal, Tank, Borewell, etc.), Zakat is 5% of Produce (crop) in Value or in Kind.
For all grazing animals like goats, sheep, camels, cows, broilers, etc., the accepted standard of Zakat payment is 1 animal per 40 animals. But you may choose to pay the equivalent amount in cash.
You need to deduct your direct Payables or Liabilities which are not deducted above. Please declare honestly as Zakat is a way to protect your wealth, provided you pay Zakat regularly and in full.
Please note that any form of interest is Haram (forbidden) and strictly prohibited in Islam. Avoid engaging in interest-based lending and borrowing or receiving interest from any individual or institution.
This calculator is provided solely for educational and personal reference purposes. It does not constitute a binding fatwa or financial advice. Due to the complexity of asset structures and the diversity of religious practice, specific situations may require consultation with qualified local Islamic scholars, Imams, or Muftis to obtain appropriate guidance.
This platform and its zakat calculator do not charge any fees, nor do we offer investment or financial advisory services.
All the information provided on this website is for reference only and is not stock and securities investment advice. TYC Finance Limited does not assume any legal liability.
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