How Zakat works · Hanafi
- Who pays: an adult, sane Muslim whose zakatable wealth, after debts due now, is at or above the nisab, and stays there for one full Islamic year.
- How much: 2.5% (one fortieth) of the total zakatable wealth on your Zakat date, not only on the amount above the nisab.
- Your Zakat date: the Islamic date when your wealth first reached the nisab. Each year on that date, add everything up again. Money that came in during the year is counted too.
- Gold and silver jewellery is zakatable in the Hanafi school, even if it is worn every day.
- No Zakat on: your home, car, furniture, clothes, phone and other things for personal use, or on a house you live in or rent out (the rent you have saved is counted with your cash).
Who can receive Zakat
- Poor and needy Muslims who do not themselves own the nisab, people in debt who cannot repay, and the other groups named in Surah at-Tawbah 9:60.
- Not your parents, grandparents, children or grandchildren, or your husband or wife. Brothers, sisters, uncles and aunts in need can be given Zakat, and it carries double reward.
- Zakat must be handed over to a person as their own. It cannot be used to build a masjid or pay for a funeral directly.
- You may tell the person it is a gift; they do not need to know it is Zakat.
Questions
Why is silver the default nisab?
Hanafi scholars in India advise using the silver nisab when your wealth is cash, savings or a mix of things, because it is lower and more of the poor are helped. Use the gold nisab only if everything you own is gold.
Is Zakat due on gold jewellery my wife wears?
Yes, in the Hanafi school, but it is due from whoever owns it. If the jewellery belongs to your wife, it is counted in her wealth, and she pays (or someone pays on her behalf with her permission).
What about my provident fund (PF)?
Money you cannot withdraw is not counted until you receive it. Ask a mufti about your own case, as PF and pension rules differ.
Can I pay Zakat in advance, or monthly?
Yes. You may pay before your Zakat date, all at once or in parts through the year. On your Zakat date, work out the full amount and pay whatever is left.
Is this calculator a fatwa?
No. It follows the general Hanafi rulings to help you work out the amount. For business, property, shares or debts that are not simple, ask a mufti.