Calculating Zakaat Nisaab

Question

AsalamAlikum

Do we exclude or include the amount of NIsaab(85/87 grams or equivalent) before calculating Zakat?

For Example Nisaab is equivalent to approximately $ 450 and I have a savings of $ 1000 will i calculate my Zakat on $1000- $ 450 = $550( amount less Nisaab) or on $1000?

Thanking You

Regards
Syed Azfar Hussain

—

Wa Alaykum Al-Salam, Sayyid Sahib,

I hope that you are well.

Answer

The Nisaab is the actual amount on which Zakah becomes an obligation. That which is other than the Nisaab will also be added to the Nisaab whilst working out the amount of Zakah if it reaches one fifth of the Nisaab. This has been taken from the Hadith of the Prophet (peace be upon him),

“Give 1 Dirham from every 40 Dirhams but if you do not have a complete 200 Dirhams then nothing is upon you”.

Abu Dawud

If the Nisaab is $450 and one possesses $1000, the actual obligation of Zakah is on $900. Zakah will also be paid on the $90 from the $100 that are left. This is because $90 is one fifth of the Nisaab. Thus, the person will pay $24.75 in total as Zakah. This is explained in Bahar-e-Shariat with a different example.

And Allah knows best,

Zahid Hussain Al-Qadri
(Beggar at the doorstep of Scholars)