1. What is Zakat?

Zakat is one of the Five Pillars of Islam, an obligatory charitable contribution of 2.5% of one's wealth above the Nisab threshold. In India, it's calculated based on current gold prices (85g gold value as Nisab).

2. How Does the Calculator Work?

The calculator uses the Zakat formula:

Where:

• \( Assets \) — Total wealth including cash, gold, investments (INR)
• \( Liabilities \) — Outstanding debts and obligations (INR)
• \( Nisab \) — Minimum threshold (value of 85g gold in INR)
• 0.025 — Zakat rate (2.5%)

Explanation: Zakat is only payable when net wealth (assets minus liabilities) exceeds the Nisab threshold for one lunar year.

3. Importance of Zakat Calculation

Details: Accurate Zakat calculation ensures Muslims fulfill their religious obligation while properly supporting those in need. It purifies wealth and maintains economic balance in society.

4. Using the Calculator

Tips: Enter total assets (cash, gold, investments), liabilities (debts), and current Nisab value (based on 85g gold price). All values must be in INR.

5. Frequently Asked Questions (FAQ)

Q1: What is included in assets for Zakat?
A: Cash, bank balances, gold/silver, investments, business inventory, and receivables. Personal items like home/car are excluded.

Q2: How often should Zakat be paid?
A: Annually, once your wealth exceeds Nisab for one lunar year (Hawl).

Q3: What's the current Nisab value in India?
A: Based on 85g gold price (check current rates). Default is ₹500,000 (example value).

Q4: Can I deduct loans from Zakat calculation?
A: Yes, immediate liabilities can be deducted from total assets before calculation.

Q5: Who is eligible to receive Zakat?
A: The poor, needy, Zakat collectors, those in debt, travelers, and others specified in Quran (9:60).