2. If the Gold possessed is less than 87.48 grams or if silver possessed is less then 612.36 grams, but the value of both combined is equal to or exceeds the Nisaab of either Gold or Silver, the Zakaat will be due.
3. In the event of an article not being of pure gold or pure silver, but containing a mixture of other metals and the gold or silver content is more than the other metal, it will be regarded as gold or silver and Zakat will be due. But in the case where other metal/s is of greater quantity than either gold or silver, Zakat will not be due on this article.
4. For stocks (shares held in a company), Zakat is calculated based upon the current market value. As machinery, land, fixtures and fittings, furniture, buildings etc. are exempt from Zakat, one is allowed to subtract these from the total asset. This could be obtained from annual reports. For example, if one has shares worth R1000 and machinery, land etc., are worth 5% of the total asset, then deduct R50 for these assets, afterwards deduct the liabilities of the company proportionately to the percentage of shares held. Zakat must be calculated on the balance.
Zakat/zakah is obligatory upon a person if:
1. He or she is an adult, sane, free and Muslim.
3. It should be possessed for a complete lunar year.
4. It should be of productive nature from which one can derive profit or benefit such as merchandise for business, gold, silver, livestock etc.
The amount of wealth, which makes one liable for Zakat, is called Nisaab. The Nisaab as fixed by Rasulullah (sallallaahu alaihi wasallam) is as follows:
1. Gold: 87.48 (grams) or 7.5 Tolas
2. Silver: 612.36 (grams) or 52.5 Tolas
3. Nisaab of cash, stock or bonds, other cash assets is the equivalent amount of Gold or Silver.
4. Nisaab is calculated by adding up the cash value of all the assets such as gold, silver, currency, etc. and if it is equal to or in excess of the minimum Nisaab as specified in the above table, the Zakat is due at the rate of 2.5%.
5. The payment of Zakat is compulsory on the excess wealth or effects which is equal to or exceeds the value of Nisaab, and which is possessed for a full Islamic year. If such wealth decreases during the course of the year and increases again to the value of Nisaab before the end of the year, the Zakat then must be calculated on the full amount that is possessed at the end of the year.
Distribution of zakat:
1. Zakat should be given as soon as possible after it becomes due.
2. All of the Zakat can be given to one person or to several persons.
3. A poor man cannot be paid for his work from Zakat nor can Zakat be given in payment of services, except to the people appointed by the Islamic government to collect Zakat.
4. Zakat will only be valid if the recipient is made the owner of that amount. If, for example, a few needy persons are fed a meal from Zakat money, then Zakaat will not be fulfilled as they were not made owners of the food.
5. Zakat cannot be given for the construction of Masjid, Madrasah, Hospital, a well, a bridge or any other public amenity.
6. Zakat can be paid in kind from the same merchandise on which it is due, or alternatively, it could be paid in cash.