The Ultimate Guide To Zakat On Cash: Everything You Need To Know
Zakat, one of the five pillars of Islam, is a mandatory charity that every Muslim must donate to the less privileged. The primary purpose of Zakat is to redistribute wealth from the wealthy to the poor and needy. If you have cash you have saved for the past year, you must pay Zakat on it.
Zakat on cash can be complex, but we are here to break it down for you. In this article, we will give you an ultimate guide on Zakat on cash, including who must pay Zakat, How to calculate Zakat on cash, and when to share it.
- Who Must Pay Zakat On Cash?
To pay Zakat in cash, one must meet the following criteria. First, you must be an adult and sane Muslim with cash savings for the past year.
Second, you must have reached the minimum Nisab threshold that Muslims must have before paying Zakat.
The minimum Nisab varies depending on the value of gold and silver. If the value of your cash savings is equal to or above the minimum Nisab, you must pay Zakat.
- How Much Should You Pay?
The calculation of Zakat on cash is straightforward. You must take 2.5% of your total cash savings for the past year and donate it to the less privileged.
You should include all your cash savings, including money in your bank accounts, cash in hand, and investments. You should not have personal assets such as your home, car, or other personal belongings.
- When Should You Give Zakat?
The best time to give Zakat in cash is during the month of Ramadan. Muslims are encouraged to give Zakat during this holy month when the reward for good deeds is multiplied.
If you cannot give it during Ramadan, you can provide it at any time of the year. You should also make sure to give Zakat on time because delaying Zakat is considered a sin.
- How Do You Calculate Zakat On Cash?
To calculate Zakat on cash, you must determine the value of your cash savings for the past year. You should include all your cash savings, including money in your bank accounts, cash in hand, and investments.
Once you have determined the total value of your cash savings, multiply it by 2.5% to get the amount of Zakat you should pay.
Conclusion
Zakat on cash is a mandatory charity that every Muslim must pay if they have met the minimum Nisab or threshold. The calculation of Zakat is straightforward and should be done annually during Ramadan.
When calculating Zakat, you should include all your cash savings, including money in your bank accounts, cash in hand, and investments.
If you have more questions about Zakat, please visit the IAC website to learn more and get answers to all your questions. We also offer an online Zakat calculator on gold that can help you calculate the Nisab and the amount of Zakat you must pay.
International Aid Charity 