Tag: Zakat on Gold

Neither Husband nor Wife Has to Pay Zakat Due on The Other

Source: https://www.islamweb.net/emainpage/PrintFatwa.php?lang=E&Id=102345

Question:
Assalaamualaikum, a sister from our forums is asking the following question. We hope that you will be to answer it: “If a person owns a small amount of jewelry (a couple hundred dollars worth), and the same person has thousands of dollars of debt (owed from before accepting Islam), and the person doesn’t have any wealth that has been sitting for 1 year, so, does the person have to pay zakat for the jewelry or not since he/she is drowning in debts?

Another question, If that person is married, but the debts are only under one person’s name (accrued by one of them only), but both feel responsible to pay it back, then does the other spouse need to pay zakat for his/her wealth/assets? I guess really my question is, Are the finances considered combined or separate for the purposes of calculating Zakat?” Jazak Allah khair

Answer:
All perfect praise be to Allah, The Lord of the Worlds. I testify that there is none worthy of worship except Allah and that Muhammad, sallallaahu ‘alayhi wa sallam, is His slave and Messenger.

You did not clarify to us whether this gold is possessed for saving and trading, or for use as an adornment.

The predominant opinion is that of the majority of the scholars, may Allah have mercy upon them, who believe that there is no Zakat on gold if it is used for adornment. However, some of them believe that Zakat must be paid on it if it reaches the Nisab (i.e. the minimum amount liable for Zakat, equal value to 85 grams of gold or 195 grams of silver) and a whole lunar year elapses on it.

For more info, please refer to Fatwa no. 87362.

According to the view that Zakat must be paid on this gold, the majority of the scholars, may Allah have mercy upon them, are of the view that if one has debts he is not obliged to pay Zakat on items like gold, silver or cash money unless the debtor has other wealth on which one should pay Zakat, and is enough to cover the amount of debt. In this case, he must first pay the debt and then pay Zakat on the remaining money if it reaches the Nisaab.

Therefore, if the question is about a woman’s adornment, then according to the view that Zakat must be paid on the gold that is used as an adornment or saved for use, then she must pay her debts from the gold which she possesses. After this, if nothing remains of it, or what remains of it is less than the Nisab, she is not required to pay Zakat.

However, it cannot be imagined that the gold that a man possesses is for adornment and use, as he is religiously prohibited from wearing it. Hence, if the owner of this gold is a man, then he should repay his debts (from the gold) and then pay the Zakat on the remaining gold in any case if it reaches the Nisab since he possesses that gold.

Zakat must also be paid on the gold that is saved or used in trade (after paying the debts and provided it reaches the Nisab), whether the owner is a man or a woman.

For more info on the Zakat of an indebted person, please refer to Fataawa no. 82490 and no. 87557.

A husband is not obliged to pay the Zakat which is due to his wife; likewise, a wife is not obliged to pay the Zakat which is due to her husband. Moreover, the spouses are not obliged to add together the money that they possess in order to calculate the amount of Zakat due. Rather, each one of them is required to pay Zakat on his own money if it fulfills the conditions of Zakat. Each one of them has a separate monetary entity.

Allah Knows best.

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Is There Zakat Due on The Diamond?

Is there Zakat (obligatory charity) due on the diamond that one wears constantly? (find your answer here)

Question:
Is there Zakat (obligatory charity) due on the diamond that one wears constantly?

Answer:
There is no Zakat due on a diamond since it is neither gold nor silver. But, it is obligatory to pay Zakat on it only if it is displayed for trade. In other words, if it is displayed for selling and buying, it becomes a commercial commodity. In this case, it is obligatory to pay Zakat on it when a Hawl (one year calculated from the time a wealth reaches the minimum amount upon which Zakat is due) passes since offering it for trade.

It should be evaluated every Hawl. If its value reaches Nisab (the minimum amount on which Zakat is due, which same value as 85 gram of gold) or more, then 2.5% of its value should be given as Zakat upon evaluating it.

May Allah grant us success. May peace and blessings be upon our Prophet Muhammad, his family, and Companions.

Sources: The Permanent Committee for Scholarly Research and Ifta’

Zakat due on Gold and Silver Swords

Does it Wajib (obligatory) to pay Zakat on the gold and silver used in swords, daggers, belts, and the like? It should be noted that there are some swords and daggers that are mostly made of gold or silver.

Does it Wajib (obligatory) to pay Zakat on the gold and silver used in swords, daggers, belts, and the like?

It should be noted that there are some swords and daggers that are mostly made of gold or silver.

The answer is zakat is due (wajib) on swords made of gold and silver or any decorations of these two metals (gold and silver) inlaid on them, if the gold or silver reaches the Nisab (the minimum amount on which Zakah is due, which weight or value of 85 gram of gold) either by itself or when added to other money and commercial commodities and they complete a Hawl (one year) while under ownership.

Narrated Khalid bin Aslam:

We went out with ‘Abdullah bin ‘Umar and a bedouin said (to ‘Abdullah), “Tell me about Allah’s saying: “And those who hoard up gold and silver (Al-Kanz – money, gold, silver etc., the Zakat of which has not been paid) and spend it not in the Way of Allah (V.9:34).” Ibn ‘Umar said, “Whoever hoarded them and did not pay the Zakat thereof, then woe to him. But these holy Verses were revealed before the Verses of Zakat. So when the Verses of Zakat were revealed, Allah made Zakat a purifier of the property.” (Sahih al-Bukhari no. 1404)

Amr bin Shu’aib narrated from his father, from his grandfather, :

That two women came to the Messenger of Allah, and they each had a bracelet of gold on their forearms. So he said to them: “Have you paid their Zakat?” They said, “No.” The Messenger of Allah said to them: “Would you like for Allah to fashion then into two bracelets of Fire?” They said, “No.” He said: “Then pay its Zakat.” (Jami` at-Tirmidhi no. 637)

Zakat can be done by pay using paper money or gold or silver itself. The calculation as below:

If pay using gold or silver:
Zakat Amount = Weight of Gold Sword/Ornaments (if reaches nisab) x 2.5%
= 150 gram (example) x 2.5%
= 3.75 gram (pay with gold)

If pay using paper money:
Zakat Amount = Weight of Gold Sword/Ornaments (if reaches nisab) x 2.5% x value of gold per gram
= 150 gram (example) x 2.5% x USD30 (example)
= USD112.50 (pay with paper money)

May Allah grant us success. May peace and blessings be upon our Prophet Muhammad, his family, and Companions.

Men’s Jewelry is Subject to Zakat

In Islam, men are forbidden to wear jewelry made of gold, silver, or any other substance, except for a plain silver ring which is permissible. Ali bin Abi Talib narrated that (meaning): “The Prophet of Allah [SAW] took hold of some silk in his right hand and some gold in his left, and then he said: ‘These two are forbidden for the males of my Ummah (Muslim Nation).'” [Source: Sunan an-Nasa’i no. 5144]. In other hadith, Ibnu Umar narrated that (meaning):…

In Islam, men are forbidden to wear jewelry made of gold, silver, or any other substance, except for a plain silver ring which is permissible. Ali bin Abi Talib narrated that (meaning):

“The Prophet of Allah [SAW] took hold of some silk in his right hand and some gold in his left, and then he said: ‘These two are forbidden for the males of my Ummah (Muslim Nation).'” [Source: Sunan an-Nasa’i no. 5144]

In other hadith, Ibnu Umar narrated that (meaning):

“Allah’s Messenger (ﷺ) wore a gold ring or a silver ring and placed its stone towards the palm of his hand and had the name ‘Muhammad, the Messenger of Allah’ engraved on it. The people also started wearing gold rings like it, but when the Prophet (ﷺ) saw them wearing such rings, he threw away his own ring and said. “I will never wear it,” and then wore a silver ring, whereupon the people too started wearing silver rings. Ibn `Umar added: After the Prophet (ﷺ) Abu Bakr wore the ring, and then `Umar and then `Uthman wore it till it fell in the Aris well from `Uthman.” [Source: Sahih al-Bukhari no. 5866]

Men’s jewelry is subject to zakat if it reaches nisab, which is 85 grams of gold or 595 grams of silver, because the use of jewelry by men is not considered a satisfaction of a natural need, like that of a woman.

Zakat is obligated on men’s jewelry as a reminder of the error of owning it and of the need to put its value back into productive use.

As for gold used by men, it is prohibited completely, except for such necessities as, caps for teeth, toot filling, or as a substitute for a cut nose or a cut ear.

There is one hadith (meaning):

AbdurRahman ibn Tarafah said that his grandfather Arfajah ibn As’ad who had his nose cut off at the battle of al-Kilab got a silver nose, but it developed a stench, so the Prophet (ﷺ) ordered him to get a gold nose. [A hasan grade hadith (Albani). Source: Sunan Abi Dawud no. 4232]

Any other use of gold, as an ornament or such, by men, is forbidden and is subject to zakat. We should recognize, however, that it is preferred to consider value, and not only weight, in the case of men’s jewelry. This is because of the value added by the artistic labour. Once the value of this jewelry reaches the equivalent of nisab (85 grams) of gold it becomes subject to zakat.

For example, if the weight of gold within a year is 200 grams then:

= Gold Weight x Current Gold Price (1 gram) x Zakat Rate (2.5%)
= 200 grams x RM170 (example) x 2.5%
= RM850