Zakat on Money (Al-Athmaan)

  1. This category includes gold, silver and whatever occupied their position as the value of things and that with which things are purchased including minted coins and paper currency.
  2. The Zakat due on money is 1/40th or 2.5% when its quantity reaches nisaab and the complete year passes with it in one's possession.
  3. The nisaab of gold is 72 grams and that of silver is 504 grams.
  4. Although these two amounts were of roughly equal value during the time of the Prophet (sas), the nisaab of gold is now of three or four times greater value than that of silver.
  5. "Money" which is neither gold nor silver - nor tied to either one - must be evaluated by its converted value to either gold or silver. Since the general principle in zakat is "when in doubt, use that opinion which is most beneficial to the recipients of zakat", the LESSER of the two should be used which at this time is that of silver, not gold.
  6. All forms of money - gold, silver and currency - are combined for the purpose of nisaab and the zakat can be paid from any of them.
  7. The "year" of zakat is the calendar year and zakat should be collected/paid in Muharram, the first month of the Islamic calendar on wealth over nisaab which was owned through all twelve months of the year.
  8. Women's gold and silver jewelry which is neither used nor lent to anyone has zakat due upon it by the agreed-upon opinion of the scholars.
  9. There is a difference of opinion regarding women's gold/silver jewelry which IS used and/or lent.  Imam Ahmad reported that five major Companions explicitly stated that there is no zakat on this item, but several sound hadith seem to indicate the contrary.
  10. It is forbidden to decorate masajid with gold and silver and obligatory to remove any such decorations if possible.
  11. Men are allowed to wear silver in the form of a ring and the sunnah is to wear it on the "ring-finger" of the left hand.
  12. It is lawful for weapons such as swords to be decorated with gold or silver. Items of gold and silver may also be warn in jihad.
  13. Both are allowed for medical or prosthetic reasons such as fillings, false teeth or the gold nose used by one of the Companions.
  14. Both gold and silver jewelry are allowed for women in whatever form is customary for women to wear.
  15. It is makrooh to wear jewelry of steel (and some added copper and lead also). There is a sound hadith which states that a steel ring is the "jewelry of the people of the Fire".
  16. Wearing other items such as precious stones is allowed for both men and women.