1. What is Zakat?

Zakat is one of the Five Pillars of Islam, an obligatory form of almsgiving for Muslims who meet the necessary criteria of wealth. It's a fixed percentage (2.5%) of a Muslim's total savings and wealth above the nisab threshold that is given to the poor and needy.

2. How Zakat is Calculated

The calculator uses the standard Zakat formula:

Where:

• Total Wealth — Includes cash, gold, silver, investments, and business assets held for one lunar year
• Nisab Threshold — Minimum amount of wealth that makes Zakat obligatory (₹440,000 in India based on gold value)
• 2.5% — Fixed Zakat rate for wealth above nisab

Explanation: Zakat is only payable if your total wealth exceeds the nisab threshold for one full lunar year.

3. Nisab Threshold in India

Details: The nisab in India is calculated based on the value of 87.48 grams of gold or 612.36 grams of silver. The calculator uses ₹440,000 as default which is based on current gold prices (adjust as needed).

4. Using the Calculator

Tips: Enter your total wealth in INR (including all zakatable assets) and the current nisab threshold. The calculator will determine if you owe zakat and how much.

5. Frequently Asked Questions (FAQ)

Q1: What assets are included in zakat calculation?
A: Cash, gold, silver, investments, business merchandise, and receivables. Personal items like home, car, and daily wear jewelry are excluded.

Q2: When is zakat due?
A: After one lunar year (354 days) of owning wealth above nisab threshold.

Q3: Can I pay zakat in installments?
A: Yes, you can pay the total amount anytime during the year after it becomes due.

Q4: Who is eligible to receive zakat?
A: The poor, needy, zakat collectors, those in debt, travelers, and others specified in the Quran (Surah At-Tawbah 9:60).

Q5: How often should I calculate zakat?
A: Once every lunar year on your personal zakat anniversary date.