A consensus among scholars of the nation has established the obligation of zakat on stored or worn gold, contingent upon specific conditions anchored in the sayings of the Prophet Muhammad, peace be upon him.
What are the conditions, nisab (minimum threshold), and methods of discharging zakat on gold according to the Hanafi school? We explore all these topics in today’s article, concluding with a note on the role of the Masarat Initiative in supporting the youth in Northern Syria.
Understanding Zakat on Gold
Conditions for Zakat on Gold According to the Hanafis
The Hanafi school obligation zakat on gold, regardless of its form—be it for adornment or trade—provided it reaches the nisab over a lunar year and amounts to 85 grams or more of pure gold.
Umm Salama, may Allah be pleased with her, narrated that she wore gold bracelets and asked, “O prophet of Allah, is this considered hoarding?” He replied, “What reaches the amount necessary to pay zakat on it, then zakat is paid, it is not considered hoarded.”
Minimum and Nisab of Zakat on Gold According to the Hanafis
The obligatory zakat amount on gold for Hanafis is one-quarter of a tenth, i.e., 2.5% of the gold’s value. The nisab for gold is twenty mithqals, supported by the hadith from Ali, may Allah be pleased with him, where the Prophet, peace be upon him, said: “For two hundred dirhams, zakat is five dirhams, and nothing is due on gold until you own twenty dinars. If you own twenty dinars and a year passes, then a half dinar is due.”
Method of Calculating Zakat on Gold According to the Hanafis
As mentioned in the letter of the Prophet Muhammad, peace be upon him, to Amr ibn Hazm: for gold reaching the value of two hundred dirhams, zakat is due for every forty dirhams.
Currently, the nisab for gold is eighty-seven grams, equivalent to twenty mithqals or twenty dinars, where a mithqal is four grams and twenty-five hundredths of a gram. Therefore, the weight of twenty mithqals is eighty-five grams of gold, equivalent to 85 grams for the total gold intended for zakat.
Imam Abu Hanifa stated that fractions are not considered until they reach one-fifth of the nisab, i.e., forty dirhams for silver, equivalent to four mithqals in gold, based on what was narrated from Hasan al-Basri: “Umar wrote to Abu Musa al-Ash’ari – may Allah be pleased with them -: for every amount over two hundred, zakat is due for every forty dirhams.”
How to Calculate Zakat on Gold According to the Hanafi
Zakat must be given on gold once it reaches the nisab, by calculating one-quarter of a tenth as mentioned in the hadith; meaning 2.5%, or by disbursing 2.5% of the total grams of gold owned.
Masarat Initiative for Education and Empowering Youth in Northern Syria
The societal role in support is undeniable, and here lies the importance of our initiative at Masarat, as we believe in our collective ability as Muslims to make a positive impact in the lives of many of our faith.
In our initiative, we focus on providing all educational services for free to our children in Northern Syria, who have faced harsh conditions. We are pleased to be the bridge between them and their well-off Muslim brethren willing to lend a helping hand through donating their gold zakat to our initiative’s fund.
Disburse your gold zakat to those in need, and be part of a better life for our children.
