The amount of Zakah payable is two and a half percent (2.5%), or 40th portion of:
1. the value of gold and silver if it is equivalent to nisaab or above it.
2. trading stocks, or its value at the time of obligation of payment of Zakah, if the stock is equal to nisaab.
3. cash on hand if equal to nisaab.
Zakah on gold and silver
• Gold and silver are subject to Zakah regardless of whether they are owned for personal use or otherwise if the weight thereof equals the prescribed nisaab and one year elapses thereon. Gold and silver are also always liable to Zakah irrespective of the asset type (gold bar, jewellery, ingot, coin etc.) Read more... (715 words, estimated 2:52 mins reading time)
Q. (i) Does the interest on loans floated by the Government to meet national requirements come under Riba?
(ii) What alternative can be suggested for the banks in case they grant loans without interest for various requirements?
A. (i) Yes the Qur’anic injunctions regarding the prohibition of interest is general. The interest is prohibited both in the public and private sectors and for all types of purposes. Any excess payment made over and above the principal amount is Riba and is thus Haraam. For more details see the answer to the question (1). Read more... (2161 words, estimated 8:39 mins reading time)