ZAKAAT ON GOLD, SILVER AND MERCHANDISE
Hadith 1: It is in Sunan Abi Dawud and Tirmizi from Ameer ul
Mo’mineen Maula Ali
�م اﷲ وﺟہہ
that Rasoolullah ﷺ said, ‘I have
pardoned (exempted) the Zakaat on horses, bondsmen and handmaids, so pay Zakaat on silver, (one dirham) from every forty dirhams. There is nothing (to pay) on one hundred and ninety dirhams, but when it reaches two hundred dirhams, then pay five dirhams.’
Hadith 2: It is reported in another narration of Abu Dawud from the same narrator that, ‘From every forty dirhams there is one dirham (to be paid), and until it does not reach two hundred dirhams, there is nothing (to pay), and when it reaches two hundred dirhams, then give five dirhams, and if it exceeds that (amount), then pay accordingly.’
Hadith 3: It is in Tirmizi Shareef from Amr bin Shu’aib who narrated from his father, who narrated from his grandfather, that two women came to the Beloved Rasool ﷺ and they were wearing gold bangles (bracelets) on their hands, so He ﷺ said, ‘Do you pay the Zakaat for them?’ They said, ‘No.’ The Beloved Rasool ﷺ said, ‘Do you like that Almighty Allah should let you wear bangles of fire?’ They said, ‘No.’ He ﷺ said, ‘Then pay their Zakaat.’
Hadith 4: Imam Malik and Abu Dawud report from Ummul Mo’mineen Umm e Salma ﻋﻨهﺎ ��ﻌﺎ� اﷲ ي�ر that she says, ‘I used to wear gold jewellery.’ I said, ‘Ya Rasool’Allah ﷺ! Is this the ‘Kanz’ (the treasure, concerning which there has been warning in the Holy Qur’an)?’
He ﷺ said, ‘That which reaches the threshold on which Zakaat must be paid, and the Zakaat has been paid (for it), is not ‘Kanz’.’
Hadith 5: Imam Ahmed reports from Asma bint Yazid on the merit of it being a Hasan narration, that she said, ‘My aunt and I presented ourselves before Nabi Kareem ﷺ, and we were wearing gold bangles (bracelets). He ﷺ asked, ‘Have you paid its Zakaat?’ We said, ‘No.’ He ﷺ said, ‘Do you not fear that Almighty Allah will make you wear bangles of fire? Pay its Zakaat!’’
Hadith 6: Abu Dawud reported from Samurah bin Jundub ؓ that Rasoolullah ﷺ would command us to pay Zakaat for that which we have acquired for trade purposes.
Law 1: The Nisaab (threshold) of gold is 20 Mithqal, in other words, seven and a half Tola (7 ½ Tola of gold) and two hundred dirhams of silver, in other words, fifty-two and half Tola (52 ½ Tola of silver). In other words, this refers to that Tola, which according to the current rupee (i.e. in the time or Sadrush Shariah) is 11 ¼ Masha. When dealing with gold and silver, the Zakaat is calculated by weight, and not by price (i.e. credence is not given to price of the item). For example, if one has made jewellery or a container which weighs 7 Tola in gold or less, and due to its design and crafting its price exceeds two hundred dirhams (i.e. more than 52 ½ Tola of silver in value), or if the price of gold is more expensive, and the value (price) of less than 7 ½ Tola exceeds the price of two hundred dirhams, just as nowadays, the price of 7 ½ Tola of gold will make many Nisaabs of silver. What is meant by this, is that if the weight does not add up to the Nisaab (i.e. the threshold stipulated for weight of gold and silver), Zakaat will not be Waajib, no matter what the price (value) may be. Similarly, if in payment for Zakaat of gold if one gave something in gold, and in
payment for Zakaat of silver, one gave something in Silver, then even in this case, it will not be based on its price but on its weight, even though a lot of crafting went into it, thereby inflating its price. Alternatively, let us assume that silver is selling at ten Aana1, and one gives one rupee in Zakaat, which is counted as 16 Aana, then in paying the Zakaat, it will be understood that one gave 11 ¼ Masha in silver. The six Aana or slightly more which is extra in the price, is wasted. [Durr-e-Mukhtar, Raddul Muhtar, vol.2, pg.38-40]
Law 2: This which has been mentioned that there is no credence given to price (i.e. value) in the payment (calculation) of Zakaat, is only applicable in the case when the Zakaat of that item is being paid for with the same type of item (i.e. gold with gold and silver with silver etc.). However, if the Zakaat of gold is being paid for with silver, and the Zakaat of silver is being paid for with gold, then it will be based on the price. For example, in payment for the Zakaat of gold, if one gave some item in silver which is worth one Ashrafi, then it will be regarded as payment of one Ashrafi, even though in weight it is not even worth 15 rupees. [Raddul Muhtar, vol.2, Pg.41]
Law 3: If gold and silver are equal to the Nisaab (i.e. the stipulated threshold) then the Zakaat on it is one-fortieth, be they in their original form (i.e. gold and silver), or if they are in form of coins, such as Ashrafis (etc.), or if they are items made from them (i.e. from gold or silver), be this if their use is permissible, such as jewellery for females, or a silver ring with one stone for a male which does not
1: An Aana was a currency unit formerly used in India, equal to 1/16 rupee. It was subdivided into 4 Paise or 12 Paais (thus there were 64 paise in a rupee and 192 paais). The term belonged to the Muslim monetary system. The Aana is not commonly used since India decimalised its currency in 1957. [Razvi Noori]
exceed 4 ½ Masha in weight, or gold or silver buttons which are not attached to chains. Alternatively, even if their usage is impermissible, such as gold and silver vessels (utensils), watches1, Surmah (collyrium) holders (containers), or a Surmah applicator, the use of which is Haraam for both males and females; or gold and silver ring (without stone) for men, or jewellery (for men), or gold rings (for men), or more than one ring (for men), or a ring with numerous stones (for men). In other words, no matter what it may be (be it permissible or not) Zakaat is Waajib on all such items. For example, if one has 7 ½ Tola of gold, then 2 Masha in Zakaat is Waajib, or if one has 52 Tola 6 Masha of silver, then the Zakaat is 1 Tola, 3 Masha and 6 Ratti.2 [Durr- e-Mukhtar, vol.2, Pg.41, etc.]
Law 4: With the exception of gold and silver, any other thing which is meant for trade, and the value of which reaches the Nisaab of gold and silver, then Zakaat is also Waajib on this. In other words, one-fortieth of the price (2.5%), and if the value of these items does not make up the Nisaab amount, but with the exception of such items, one also has gold and silver as well, then the value of those items will be combined with the value of the gold or (and) silver. Additionally, if all added together makes up the value of Nisaab, then Zakaat is Waajib on it, and the value of the item should be counted in the currency which is most commonly used in that place, just as the Rupee is most commonly used in India, so it will be valued based on the Rupee.
1: Watch here does not mean women cannot wear gold or silver watches, but it means if worn not as jewellery but as apparel, it is not permitted.
2: The weights, Tola, Masha and Ratti are being used as it was the weight measure in the time of Sadrush Shariah. As per present weight system, all that we need to understand is that one will pay Zakaat of 2.5 % on the money, item or items which have reached the threshold of Zakaat.
Also, if at any place the currency is both in silver coins and gold coins, then in this case one has the choice of counting it in either of them, but in the case when it is calculated in cash (money) it does not reach the Nisaab amount but if it is calculated in Ashrafis (i.e. gold) it reaches the Nisaab, or vice versa, then in this case the value is based on the one through which Nisaab is reached. If the Nisaab is reached through both, but in one, with the exception of Nisaab, one-fifth part of the Nisaab is more, and this is not the case in the other one, then the value will be calculated based on that calculation which is equal to one Nisaab and one-fifth. [Durr-e-Mukhtar, vol.2, pages 41/42, etc.]
Law 5: If one has valuables more than the Nisaab (threshold), then if this extra is one-fifth of the standard Nisaab, then Zakaat on this is also Waajib. For example, if one has two hundred and forty dirhams, meaning 63 Tola silver (as per the time of Sadrush Shariah), then it is Waajib to pay Zakaat of 6 Dirhams, meaning 1 Tola 6 Masha and 1 Ratti must be added. In other words, after 52 Tola and 6 Masha, on every 10 Tola 6 Masha, 3 Masha 1 1 Ratti must be added. Alternatively, if one has 9 Tola gold, then it is 2 Masha 5 3 Ratti, meaning after 7 Tola and 6 Masha, on every 1 Tola and 6 Masha, 3 3 Ratti must be added, and if it does not reach the 1 amount, it is exempted. In other words, if there is even one Ratti less than 9 Tola of gold, then Zakaat is (only) Waajib on that 7 Tola and 6 Masha. In other words, (the Zakaat) is 2 Masha. Similarly, if the silver is even one Ratti less than 63 Tola then the Zakaat which is Waajib, is only on that (initial) 52 Tola and 6 Ratti and that is 1 Tola 3 Masha and 6 Ratti. Similarly, whatever is more after the one-fifth portion, then if that is also one firth portion, then one- fortieth of that is Waajib, otherwise it is exempted, and so on and so forth based on this analogy (and system). The same ruling is on merchandise for trade. [Durr-e-Mukhtar, Vol.2, Pg.43]
Law 6: If there is alloy mixed with gold or silver, and the gold or silver is more, then (all of it) will be counted (calculated) as gold or silver, and Zakaat will be Waajib on all of it. Similarly, if the alloy is equal to the gold or silver, then Zakaat is still Waajib on it. However, if the alloy (i.e. its quantity) is more than the gold or silver, then it is not regarded as gold or silver. However, there are few scenarios here; if the (quantity) of gold or silver found in it, is such that if separated then it will reach the Nisaab (the threshold), or if it (by itself) does not reach the Nisaab (threshold), but if one has with him other valuables that if this is added to it, then it will make up the Nisaab, or if it is something which is used as ‘Thaman’ (i.e. the price/value of something), and its value reaches Nisaab, then in all these cases Zakaat is Waajib. If none of these scenarios are found, and if it is intended for trade, then with the conditions of trade, it should be regarded as trade goods, and if its value is equal to Nisaab by itself, or if it adds up to the Nisaab amount after being combined with other things, then Zakaat on it is Waajib, otherwise not. [Durr-e-Mukhtar, Vol.2, Pg.43/44]
Law7: If gold and silver have been mixed together, then in this case if the gold is more (in quantity), it will be regarded as gold. Alternatively, if both are equal, and the gold reaches the standard Nisaab, either by itself or after being mixed with the silver, it will still be regarded as gold. If the (quantity of) silver is more, it will be regarded as silver, and if it reaches the Nisaab, Zakaat will be paid on it as silver, unless there is such an amount of gold in it which is more than the price (value) of the silver, then in this case, all of it will be counted as gold. [Durr-e-Mukhtar, Raddul Muhtar, vol.2, Pg.43]
Law 8: If one has both gold and silver and both reach the complete standard Nisaab, then in this case it is not necessary to pay the Zakaat by counting the gold as silver or silver as gold, but the Zakaat of each is Waajib separately. However, if the one paying the Zakaat wishes to pay the Zakaat of both, with one thing, then he has the choice of doing so, but in such a case it is Waajib, that he should calculate it at the rate of that thing which is more beneficial to the Faqeers (i.e. the recipients of Zakaat). For example, in India, the common currency is the Rupee which is used more than the Ashrafi (i.e. gold coin), so in this case one will use the price of silver and calculate the Zakaat, and give the silver as Zakaat (i.e. in those days the Rupee coins were silver), and if from both (i.e. gold and silver) neither one reaches the standard Nisaab, then in this case, he should assume and convert silver to the value of gold and gold to the value of silver and mix them. Alternatively, even after mixing them together, if it still does not reach the standard Nisaab, then there is nothing (i.e. no Zakaat on them). If one adds silver to the value of gold, in silver, it reaches the standard Nisaab, and if one adds gold converted to the value of silver, to the gold, it does not reach the standard Nisaab, or vice versa, then it is Waajib to do that in which the standard Nisaab is reached. If the standard Nisaab is reached by both methods, then one has the choice to do as he wishes, except if through one method the Nisaab is inflated by one-fifth, then in this case, it is Waajib to use the Nisaab which is inflated by one-fifth. For example, if one has 26 ¼ Tola silver and one has 3 ¾ Tola gold, then if 3 ¾ Tola of gold comes to (the same value of,
i.e. buys) 26 ¼ Tola of silver, and if the (value) of 26 ¼ Tola silver comes to (the same value of, i.e. buys) 3 ¾ Tola of gold, then one may regard the gold as silver or the silver as gold, but if one gets 37 Tola silver in lieu 3 ¾ Tola of gold, and for 26 ¼ Tola silver, one does not get 3 ¾ Tola gold, then in this case it is Waajib to regard the gold in the counting of silver, because in this way the standard Nisaab is reached. Also, it
actually inflates to one-fifth more, and in that (other method) even the standard Nisaab is not reached. Similarly, if each of them is slightly more than the Nisaab, then if the extra is one-fifth of the standard Nisaab, then Zakaat must be given on that (extra) as well, and if the extra in each is less than one-fifth of the standard Nisaab, then both should be mixed, and even after being mixed, if they still do not reach one-fifth of the Nisaab of any of them, then there is no extra (Zakaat) on the this extra. Alternatively, if both reach the Nisaab or one-fifth (more) of the standard Nisaab, then one has the choice, except in the case when one (of them) reaches the full standard Nisaab and the other reaches one-fifth of the standard Nisaab, then in this case one should use that method which reaches the standard Nisaab. Alternatively, if one (of them) reaches Nisaab or the one-fifth, and the other does not, then it is Waajib to do that in which Nisaab or one- fifth of Nisaab is reached. [Durr-e-Mukhtar, Raddul Muhtar, Vol.2, pg.45/46, etc.]
Law 9: When money is used as common currency and is in circulation, and it is equal to the value of two hundred dirhams or 20 Mithqal (i.e. it is equal to the current standard Nisaab 52 ½ Tola of Silver or 7 ½ Tola of Gold), then Zakaat on that is Waajib, even if it is not for trade purpose. Alternatively, if that currency is redundant (not in use anymore), then unless it is not used for trade purposes, Zakaat on it is not Waajib. [Fatawa Qaari Al Hidaya]. Zakaat on notes is also Waajib, for as long as they are common and in circulation as this too is regard as ‘Thaman e Istilahi1’, and the ruling is the same as any (other) money (i.e. coins).
1: In other words, it is Thaman, which in reality is ‘Mata’ (i.e. goods), but the terminology of the people has made it Thaman.
Law 10: The Zakaat regarding the amount which is owed1 to you by someone, and (the rulings as to) when Zakaat becomes Waajib on it, and when it is regarded as paid, is in three categories:
Dayn e Qawi
The first category is if it (i.e. the amount owed to you, i.e. the debt) is ‘Dayn e Qawi’ (i.e. a secure loan), such as a loan which in common terms is also called ‘current loan’ or a ‘short term loan,’ and it is the ‘Thaman’ of merchandise (trade goods). For example, if one bought goods with the intention of trade, and he sold it on credit to someone, or if it is the rent of something intended for business purposes. For example, if one purchased a house (building /warehouse etc.) or land with the intention of business, and he has rented it to someone to live in, or to use it for cultivation etc., then if this rent is owed to him, it will be regarded as Dayn e Qawi (secure), and the Zakaat on Dayn e Qawi, as long as it is still owed, will be Waajib (i.e. due) year after year. However, it is only Waajib to pay it, when one-fifth of the standard Nisaab amount is already received. Actually, only the Zakaat on that amount is Waajib (due), which has already been received. In other words, if one receives forty dirham (i.e. the amount equal to one fifth of the current Nisaab amount) then he must pay one dirham in Zakaat, and if he received eighty dirhams, then he will pay two dirhams, and so on and so forth based on this analogy (and system).
1: Here, ‘Dayn’ The amount owed does not absolutely refer to a debt, but it refers to every such ‘Maal’ (form of wealth), which for whatever reason, the liability for which a person is regarded responsible.
Dayn e Mutawas’sit
The second category is Dayn e Mutawas’sit (i.e. a partially secure loan). Dayn e Mutawas’sit is when some entity which is not for trade purposes is transformed. For example, if one sold the grains which were meant for home use, or a horse which is used for (personal) transport, or the slave who is for your service, or any other item which is from Haajat-e-Asliyah (a person’s basic essentials), and the amount is still owed by the buyer. Then in this case, Zakaat will only be necessary when one receives and has possession of two hundred dirhams (i.e. the amount which is equal to the current standard Nisaab). Likewise, if he received the ‘Dayn’ of a testator, as inheritance (i.e. that which was owed to the testator was passed over to him), even though it was in lieu of trade goods, then in this case, after the heir receives two hundred dirhams (i.e. the amount which is equal to the current standard Nisaab) and after a year passes since the death of the testator, to give Zakaat (on this) will be necessary.
Dayn e Da’eef
The third category is Dayn e Da’eef (An Insecure Loan), meaning that which is in lieu of other than ‘Maal’ (valuables / merchandise), such as Mahr (Dowry), Badal e Khula (Exchange payment for Khula), Diyat (Blood money), Badl e Kitaabat (Exchange for Freedom of a slave), or if one bought a house or shop without the intention of selling it (i.e. not for trade), and its rental is owed by the tenant, then to give Zakaat on this will only be Waajib (i.e. it will only be due) once a year passes after having possession of the standard (current) Nisaab. Alternatively, if one has some Nisaab of that same type of thing, and its full year comes to completion, then Zakaat on it is Waajib.
If one only receives the Dayn e Qawi and Dayn e Mutawas’sit after many years has passed, then the Zakaat of the past year which he was responsible for, will be added to the account of the next year on that same amount. For example, Amr owed Zaid three hundred dirhams in Dayn e Qawi, and after five years, he received less than forty dirhams (i.e. less than 1/5 of the Nisaab amount), then there is no Zakaat due on that, and if he received forty dirhams (i.e. 1/5), then he must pay one dirham (as Zakaat). Now he has 39 dirhams remaining (as he has paid one dirham from the forty dirhams as Zakaat), which is now regarded as less than one-fifth of the standard Nisaab, thus the Zakaat of the past years is not Waajib upon him as yet. If the amount being owed was three hundred dirhams which is Dayn e Mutawas’sit, then unless he does not receive two hundred dirhams, he is not liable to pay anything (as Zakaat on it), and after five years if he received two hundred dirhams, then twenty-one dirhams is Waajib on him. For the first year it was five (dirham), so now for the second year it will be one hundred and ninety-five, and from it, thirty-five (dirhams) which is less than one-fifth (of the standard Nisaab), is exempted, so he remains with one hundred and sixty (dirhams), and from it, four dirhams is Waajib (as Zakaat). Then in the third year, one hundred and ninety-one dirhams is left (because he was left with one hundred and fifty-six dirhams plus the thirty five dirhams which was exempt in year two due to it being less than the extra one-fifth. Hence, in the third year he has one hundred and ninety-one dirhams) and even from that (one hundred and ninety-one) four dirhams (Zakaat) is Waajib. In year four, one hundred and eighty-seven dirhams are left, and in year five, one hundred and eighty-three dirhams remained, and even for them, four dirhams for each (year, i.e. for the fourth and fifth year) is Waajib as Zakaat. Therefore, all in all, it is Waajib to pay twenty-one dirhams (in Zakaat for all five years). [Durr-e-Mukhtar, Raddul Muhtar, vol.2, pg.47/50]
Law 11: If the year of Nisaab was already active before the Dayn (loan/amount owing to you), then the amount which is owed by someone in the course of that (Zakaatable) year will also be counted as the same year, which was already running (i.e. active) from before, and not from the time of the loan. Alternatively, if before that loan, the (Nisaab) year of that particular entity was not already active, then it will be calculated from the time of the loan (Debt which is owed to you). [Raddul Muhtar, vol.2, pg.49]
Law 12: If someone owes you an amount which is regarded as Dayn e Qawi or Dayn e Mutawas’sit, and the debtor dies, then the Wasiyat of the Zakaat for that debt at the time of his death is not necessary (upon him), because that Zakaat was not really Waajib (due) to pay (at that time). Also, the Zakaat upon the heir will only be applicable when a year passes after the death of the Testator, and after he receives forty dirhams in Dayn e Qawi (i.e. one-fifth of Nisaab), and two hundred dirhams in Dayn e Mutawas’sit (i.e. the amount equal to the full standard Nisaab). [Raddul Muhtar, vol.2, pg.49]
Law 13: After a full year, if the creditor pardons the debt (or loan etc.), or before the completion of the (Zakaatable) year, he gave the Zakaat amount away as a gift, the Zakaat has been waived. [Durr-e- Mukhtar, vol.2, pg.50]
Law 14: If a woman received her dowry (Mahr) amount, and after a year passed, the husband gave her Talaaq without having intercourse with her, then she will have to return half the Mahr, and Zakaat is (still) Waajib on the full amount. The Zakaat on this amount received by the husband will be Waajib (due) on him after a year passes over it, from the time of receipt. [Durr-e-Mukhtar, vol.2, pg.50]
Law 15: If a person acknowledges that a certain person owes me (some amount), and he has also given it to him, but after a year both of them say that there was no debt (i.e. nothing was owed), then Zakaat is not Waajib upon any one of them (for this). [Alamgiri, vol.1, pg.182]. However, what is obvious is that, this is in the case when he had assumed that there was a debt, because if he makes this excuse simply to have the Zakaat waived, then he will be held accountable in the Court of Allah.
Law 16: After a year passes on trade goods (i.e. merchandise), Zakaat on it is due as per its current value, but the condition is that at the beginning of the year it should not have been worth less than two hundred dirhams (i.e. it should not be less than that of the standard current Nisaab). If it (the merchandise) is made up of different entities, then the value of all put together should either make the equivalent of 52 ½ Tola of silver, or 7 ½ Tola of gold. [Alamgiri, vol.1, pg.179]. In other words, this is when he has only these valuables (merchandise etc.); and if with the exception of this, he still has gold or silver (or gold and silver), then he should combine altogether.
Law 17: After a year has passed, if grain or any other trade goods to the value of two hundred dirhams (i.e. Nisaab) is in your possession, but the (market) rate of the said item has fluctuated (gone up and down), then if one wants to give Zakaat from that, then he should give one-fortieth (i.e. 2.5 %) of whatever was its value on that day.
- Here ‘Dayn’ does not only refer to the absolute loan, but it refers to every such valuable, which for whatever reason is Waajib upon a person (to pay).
- In this section, the ‘Dayn’ (loan) refers to the debt which is owed to
Alternatively, if one wishes to give something else equal to its value (in Zakaat), then that value must be used, which was applicable on the day which marked the completion of its (Zakaatable) year. If that object was wet on that day when it’s (Nisaab) year was completed, but it has now become dry, then too the same value will be used (which was on the day when the year completed). Also, if it was dry on that day, but today it has become wet, then the value of today will be taken. [Alamgiri]
Law 18: The price (value) must be calculated based on the place (location) where the goods are being kept. If the goods are in the wilderness (unpopulated place), then it will be calculated based on its values at the populated locality which is closest to it. [Alamgiri, vol.1, pg.180]. It is obvious that here such merchandise are being referred to, which cannot be bought (i.e. sold), in the wilderness. However, if the buyer does go into the wilderness (to buy such things), such as wood, and those things which grow there, then for as long as the merchandise are kept there, the price (value) of it will be according to that place (location).
Law 19: If one has ‘Degs’ (Pots) which one gives out on rent (i.e. on hire), then there is no Zakaat on those pots, and the same applies to houses which are on rent (i.e. there is no Zakaat on that actual property which is on rent). [Alamgiri]
Law 20: If one has a horse business, and he purchases cloth which is used on the back of the horse, or if he buys reigns and ropes etc. for it, so that it may be used for the safety of the horse, then there is no Zakaat on these. However, if he bought it so that the horse may be sold with all these items, then there is also Zakaat on them as well. If a baker bought wood to cook (bake) bread, or if he bought salt to add to
the bread, then there is no Zakaat on them, but if he purchased sesame seeds to sprinkle on the bread, then the Zakaat on the sesame seeds is Waajib. [Alamgiri, vol.1, pg.180]
Law 21: If a person gave his house on rent for three years, at a rental income of three hundred dirhams per annum, and he has nothing else (on which to pay Zakaat), and whatever comes as rental, he keeps it aside (i.e. he saves it), then after eight months pass, he will become the owner of Nisaab, because the rentals of eight months will add up to two hundred dirhams (i.e. to the standard current Nisaab in this scenario). Hence, from today, his Zakaat year has commenced (i.e. one year from now the Zakaat will be due), and on completion of the year, he will give Zakaat on five hundred dirhams, because the rental for twenty months equals to five hundred dirhams (i.e. for the 12 months of the Zakaat year, plus the initial 8 months rental). Now if another year passes thereafter, then he will give Zakaat on eight hundred dirhams, but for the first year’s Zakaat, he will give twelve and a half dirhams less. [Alamgiri] Actually in eight hundred dirhams, Zakaat will be Waajib on forty dirhams less, because there is no Zakaat on less than forty dirhams, as that is exempted.
Law 22: A person has only one thousand dirhams and he has no other wealth (i.e. capital etc.). He has taken a house on rent for one hundred dirhams per year, for ten years, and he has given the complete payment (in advance) to the owner of the house, so in the first year he will give Zakaat on nine hundred dirhams, because the one hundred dirhams has gone as the rent for the year. In the second year, he will give Zakaat on eight hundred dirhams, but in actual fact from the Zakaat of the first year he will subtract twenty two and a half dirhams from the eight hundred dirhams (as twenty-two and a half dirhams was the Zakaat he already paid in the first year from that
amount) and then pay Zakaat on the balance. Similarly, every year he will subtract one hundred (for the rental of that year) and the Zakaat amount that he paid the previous year, and then pay Zakaat on the balance. Further, if the owner of the house has no other valuables, except for that one thousand, then for two years, he is not liable for any Zakaat (i.e. because only after two years will he be the owner of 200 dirhams being the standard Nisaab). Now, after two years pass, he is the owner of two hundred (i.e. whatever is the standard Nisaab), and at three years he will give the Zakaat on three hundred dirhams. Likewise every year, he will pay on a hundred more, but this will be after deducting the Zakaat paid for the past years, so Zakaat will be on whatever is Waajib thereafter. In the same manner, if a person gave a handmaid to him to the value of the rent, Zakaat is not Waajib on the tenant, but the owner of the house is still liable, as he would be in the case of (being paid in) dirhams. [Alamgiri, vol.1, pg.182]
Law 23: If for businesses purposes one purchased a valuable slave for two hundred dirhams who was worth two hundred Dirhams, and the payment was made to the seller, then in this case if he has not as yet taken possession of the slave, and a year has passed, and the slave dies at the place of the seller, then both the buyer and the seller are liable for Zakaat on two hundred dirhams each. Alternatively, if the slave was worth less than two hundred dirhams, and the buyer purchased the slave for two hundred dirhams, then the seller will give Zakaat on two hundred dirhams and the buyer is not liable for anything. [Alamgiri, vol.1, pg.182]
Law 24: If one sold a slave meant to serve, for one thousand and he also collected the payment, then after one year it was ascertained that the slave has some defect, and the slave was thus returned, be this on the order of the Qadi, or if he took him back on his own free will, he will give Zakaat on one thousand. [Alamgiri, vol.1, pg.182]
Law 25: In place of money, if one gave food, grain or clothing etc. to a Faqeer (Zakaat recipient), and in doing so he made him the Malik (owner) of it, the Zakaat will be fulfilled. However, its Zakaat must be based on the price or value of that item which is the current market rate. Additional costs, such as the amount which was paid to a labourer to carry it from the marketplace, or if he brought it in from the village, then the transportation costs and levies etc. should not be deducted. Alternatively, if the item was cooked and given, then the price of cooking and the wood etc. (used for cooking) should not be deducted. It will be calculated based on what that cooked item costs in the market. [Durr-e-Mukhtar, Alamgiri, vol.1, pg.179]