Zakat on wealth comprises several sub-categories, namely zakat on savings, zakat on gold, zakat on business, zakat on CPF savings and zakat on shares.
Zakat on Gold
Gold is used as an exchange medium. Since Islamic
law treats gold as a worldly possession. It has made
zakat obligatory when the value of gold has reached
nisab and, if a year (haul) has been completed.
Gold items
Item
Weight
Gold Bar
500grams
Ring
50grams
Chain
200grams
Based on the list above, zakat is payable only on the gold bar because it exceeds the nisab and meets the condition governing haul. Rings and chains are ornaments for women and zakat on them is not payable.
Value
Value of gold saved = 500 grams x $18 = $9000
Zakat Payable
Value of gold saved = 500 grams x $18 = $9000
Nabi s.a.w commandment:
Type of Gold that is compulsory for zakat
Gold that is not used or worn means that the gold
has not been used during the period of 1 year. If
the value of the gold is over 86 grams (nisab),
then it is a must to pay zakat of 2.5%. Nisab rate
for gold is equivalent to 86 grams of gold.
