Zakat Nisab

Zakat Nisab, Nisab Threshold, Nisab Amount, Nisab value

Author: Mohamamd Hashim Qasmi Bastawi

In Islam, Zakat is an important and essential obligation and act of worship; In fact, it holds the honor of being one of the fundamental pillars of Islam. If someone denies Zakat, he is considered to be outside of Islam. Zakat is obligatory upon every person who possesses the nisab (minimum amount of Zakat). There are great virtues and merits of Zakat, and there are severe warnings from Allah and his Messenger for those who do not give Zakat.

The obligation of Zakat depends on the wealth of Zakat and whether a person is a sahib-e-nisab (a person who possesses the minimum amount of wealth required for Zakat). To understand this, we first need to know on which items and assets zakat is obligatory? What is the nisab (minimum amount) for Zakat on the wealth? For non-specified Zakat wealth, what should be the criteria for determining the nisab? Let’s try to understand each aspect in somewhat more detail:

On which assets and goods is Zakat obligatory?

In Islamic Shari’ah, Zakat is obligatory on seven types of assets and goods:

(1) Camels.

(2) Cattle, bulls, buffaloes, etc.

(3) Sheep, goats, and lambs.

(4) Gold.

(5) Silver.

(6) Commercial assets and goods.

(7) Currency, cash.

After understanding the assets of Zakat, let us try to  know about the Nisab for each category:

Nisab of Zakat for Camels:

The minimum number for giving Zakat on camels is five. Zakat is not obligatory on less than five camels.

If someone has five camels, he is required to give one yearling  goat.

For ten camels, two goats are required; for 15 camels, three goats; and for 20 camels, four goats.

Once the number of camels reaches 25, up to 35 camels, one yearling female camel is required.

For 36 to 45 camels, one two-year-old female camel is required.

For 46 to 60 camels, one three-year-old female camel is required.

For 61 to 75 camels, one four-year-old female camel is required.

From 76 to 90 camels, two two-year-old female camels are required.

From 91 to 120 camels, three female camels that are capable of breeding and three years old are required.

When the number exceeds 120, for every forty camels, one two-year-old female camels are required, and for every fifty, one three-year-old female camel that is capable of breeding is required.

Nisab of Zakat  for Cows, Bulls, and Buffaloes:

The nisab for cows and bulls is a minimum of 30 cows.

If someone has fewer than 30 cows, then zakat is not obligatory for him. Once the number of cows reaches 30, he is required to give one one-year-old cow or bull as zakat.

This rule applies up to 39 cows.

When he has 40 cows, one two-year-old cow or bull becomes obligatory, and this rule applies up to 59.

When the number reaches 60, two one-year-old cows or bulls become obligatory, and this rule applies up to 69.

When he has 70 cows, one one-year-old cow and one two-year-old cow become obligatory.

Nisab of Zakat  for Sheep, Goats, and Lambs:

The minimum Nisab for sheep, goats, and lambs is 40. Zakat is not obligatory less than 40.

When their count reaches forty, one goat is obligatory for the range of 40 to 120.

For the range of 121 to 200, two goats are obligatory.

For the range of 201 to 399, three goats are obligatory.

At 400, four goats are obligatory.

Then, for every additional 100, one goat becomes obligatory.

Note: The condition for the animals mentioned above to be subject to Zakat is that all these animals must fulfill the prescribed minimum possession of Nisab, and with the completion of a full year (Hawlaan al-Hawl), they must graze in common pastures for most of the year.

The only purpose for keeping these animals should be for milk production, breeding, or hobbyist farming, without any other intention.

If the feed and water for these animals are managed at home, or if the purpose is to use them for carrying loads, farming, or riding, then Zakat is not obligatory on such animals.

The nisab of gold and silver for the obligation of Zakat:

The Nisab for the obligation of Zakat on gold is 20 mithqal, which is equivalent to 20 dinars. In terms of weight, it amounts to 7.5 tolas, and in grams, it weighs 87.48 grams.

The Nisab for the obligation of Zakat on silver is 200 dirhams, which weighs 52.5 tolas, and in grams, it weighs 612.36 grams. The Zakat rate for gold and silver is 2.5%.

Nisab of Zakat on Trade Goods and Currency:

To determine the nisab (minimum amount) for zakat on trade goods and currency, the majority of scholars have considered the nisab of silver as the standard. A person who possesses cash or trade goods equivalent to the value of 52.5 tolas of silver, or whose total value of both exceeds or is equal to the value of 52.5 tolas of silver, is termed as a صاحبِ نصاب (one who meets the nisab). The zakat rate for both is also similar to that of silver, which is 2.5%.

However, some scholars consider the nisab of gold as the standard for zakat on trade goods and currency. Their opinions are understood in light of various arguments.

Let us try to understand their statements in the context of these arguments.

In the zakat of gold, silver, currency, and commercial goods, which should be considered as the standard: gold or silver?

If someone only has silver, then the zakat will be based on the nisab of silver. If someone only has gold and no silver, then the zakat will be based on the nisab of gold. There is no disagreement in this.

The disagreement arises when someone has both silver and gold, but neither meets the nisab for zakat. Similarly, if someone has business assets, and trading goods, or cash in the form of money and currency, there is a disagreement on which standard should be considered for zakat on these assets: gold or silver?

Generally, the opinion of the scholars of united India is that in this case, silver will be used as the standard. Therefore, anyone who has paper notes, currency, or trade goods equivalent to the nisab of silver will be considered eligible (saheb-e-nisab) for zakat, and zakat will be obligatory upon him.

The evidence presented by these scholars is that using silver as the standard benefits the poor and needy more. As a result, the number of wealthy people will increase, leading to a higher collection of zakat. According to Imam Abu Hanifa, preference in matters of zakat is given to that which benefits the poor more. This preference has also been endorsed by the Fiqh Academy, the Muslim World League, and the Scholars’ Committee of Saudi Arabia.

Contrary to this opinion, some Arab scholars and certain scholars from undivided India believe that the standard for the zakat on trading goods and currency should be based on gold.

That there is no specific guidance from Sharia regarding the zakat on trade assets, currency, or paper notes, thus there should be a standard that benefits everyone. By using silver as the standard, zakat would become obligatory even on very small amounts of currency and trade goods.

At the time when the nisab for silver and gold was established, the value of the nisab for silver was equivalent to that of gold. However, at the present time, there is a big difference in the values of both. If silver is made the standard, then in today’s context, if someone has approximately fifty-two to fifty-three thousand rupees saved for a year or if they start selling goods worth that amount on the sidewalk, zakat will become obligatory on them, and it would be forbidden for them to take zakat. Additionally, a sacrifice may also become obligatory, which could be beyond their reach. In such a scenario, many people may face difficulties.

The second reason is that, in the present time, due to the amount of the nisab of the silver standard, no one is considered wealthy in society. Additionally, it is not easy to cover the expenses of a small family with such an amount of money today. The situation was different in earlier times when a small family could manage its expenses with this amount. Hazrat Shah Wali Allah Muhaddith Dehlawi writes in his book “Hujjatullah al-Baligha”:

وَإِنَّمَا قدر النصاب من الْوَرق خمس أواق لِأَنَّهَا مِقْدَار يَكْفِي أقل أهل بَيت سنة كَامِلَة إِذا كَانَت الأسعار مُوَافقَة فِي أَكثر الأقطار. حجة الله البالغة (2/ 66)

Translation: The nisab of silver is set at two hundred dirhams because it is an amount that is often sufficient for a small family for an entire year in most countries if the prices are favorable.

One of the arguments made by these scholars is that if the nisab of gold is compared to that of camels, cows, and goats, the difference will be very minimal. In contrast, if in the present era, the nisab of  gold is compared to that nisab of silver, there will be big diffrence  between gold and silver.

An Opinion About the Nisab of Trade Goods and Currency:

These were the arguments from scholars on both sides. In light of these arguments, a third approach can also be derived in today’s context. This is to recommend that those whom Allah has blessed with immense wealth, and who are indeed wealthy, should use silver as the standard for the zakat on currency and trade assets, as this would not be a loss for them. On the other hand, those who are not wealthy and have only a little cash should use gold as the standard for zakat on currency and trade assets, so that they do not suffer any loss.

Summary:

Among the assets of Zakat are camels, cattle, buffaloes, sheep, goats, gold, and silver .

The nisab for Zakat and the ownership of these assets by their owners is clearly evident from the details above, as the specifics of Zakat for them are ordained by Sharia.

However, what is the nisab (minimum amount of Zakat ) for commercial goods and currency? When can their owners be considered possessors of nisab ? Scholars have differing opinions on this matter.

A large group of scholars considers the nisab of silver as the standard for commercial goods and currency, keeping in mind the benefit of the poor and needy, while some scholars believe that , in this case, the standard should be the nisab of gold.

They argue that there is a significant difference in the prices of gold and silver at present. If silver is taken as the standard for these goods and paper currency, then Zakat would also become obligatory on ordinary currency and goods, which could pose difficulties for many people.

 

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