Zakat on gold is a fundamental matter that has been the subject of significant disagreement among the scholars of the nation, with varying views among the jurisprudential schools.
Today’s article highlights the Hanbali school’s stance on the zakat of gold, its ruling, conditions, nisab (threshold), as well as the method adopted by the Hanbali school in calculating this zakat and the ways to disburse it.
Zakat on Gold Ruling According to the Hanbalis
The Hanbalis have issued a fatwa stating that there is no zakat on jewelry intended for use or loan. However, if it is not intended for use, then zakat is obligatory. Similarly, if the gold reaches the nisab in terms of value but not weight, zakat is not due because one of the agreed-upon conditions for zakat on gold is not met.
Conditions for Zakat on Gold According to the Hanbalis
Contrary to some jurisprudential schools that required paying zakat on all types of gold regardless of its purpose of use, the Hanafi school posits that zakat on gold is only obligatory on gold stored for the purpose of trade and investment.
The conditions for zakat on gold are summarized as follows:
- The gold must reach the nisab of 85 grams or more.
- It must be of pure, 24-karat gold.
- A lunar year must pass on its possession from the date of purchase.
- The gold ownership must belong to one person who is the sole disposer of it.
Zakat Rate on Gold According to the Hanbalis
According to the Hanbali school, the nisab threshold for obligatory zakat on gold starts from 85 grams or more, with a reminder that this nisab is calculated only with 24-karat gold.
How to Calculate Zakat on Gold According to the Hanbalis
If you possess pure, 24-karat gold that reaches the nisab, there’s no need to ask anyone how to calculate the amount of zakat you need to pay on it.
According to the Hanbalis, you need to know the price per gram of gold, then calculate the rate of “one quarter of a tenth,” i.e., the value of 2.5% from the value of every 85 grams of gold.
Timing of Disbursing Zakat on Gold According to the Hanbalis
The appropriate timing for disbursing zakat on gold according to the Hanbalis is after a full lunar year has passed from the date of ownership.
The Prophet said: “There is nothing upon you, meaning in gold, until you have twenty dinars, and when a year passes over them, then half a dinar is due, and so on accordingly.”
Masarat for Education and Empowering Youth in Northern Syria
The Masarat initiative strives to achieve equality in educational opportunities by offering its services for free to children and youth in Northern Syria, enabling them to access equitable educational chances.
Following the pure command of our religion in disbursing zakat to the needy and poor among Muslims to achieve justice and equality in society, we invite you to join us by donating your gold zakat to the initiative’s fund and contribute to changing a child’s life for the better with your help and support.
