Assalamu Alaikum. If you are reading this, you have taken an important step toward fulfilling one of the five pillars of Islam—Zakat. We at Kashmir Imdaad Foundation have prepared this guide especially for our brothers and sisters in Kashmir and across India who wish to understand how to calculate Zakat on gold. We have written it in simple language, as if we are sitting with you and explaining face to face. There is no need to worry if this is new to you; we will take it step by step.
What is Zakat on Gold?
Zakat is a form of obligatory charity in Islam. When a Muslim owns gold (or silver, cash, or certain assets) above a minimum amount—called the nisab—for a full Islamic (lunar) year, they must pay 2.5% of its value as Zakat. Think of it as a small share of what Allah has blessed you with, given back to those in need. It purifies your wealth and brings barakah (blessing) to what remains.
Understanding the Nisab for Gold
The nisab is the minimum amount you must own before Zakat becomes due. For gold, the nisab is 85 grams (about 7.5 tolas, as many in Kashmir and India still use). If your total gold—including jewelry, coins, bars, or ornaments kept for investment—is less than 85 grams, Zakat is not due on it. If it is 85 grams or more, and you have held it for one full lunar year, then Zakat is wajib (obligatory).
Quran 9:60 — "Zakat is only for the poor and the needy, and those employed to collect it, and those whose hearts are to be reconciled, and for freeing slaves and those in debt, and for the cause of Allah, and for the wayfarer—an obligation imposed by Allah. And Allah is All-Knowing, All-Wise."
Step-by-Step: How to Calculate Zakat on Gold
Please follow these four simple steps:
Step 1 — Add up all your gold: Gather every piece of gold you own—jewelry (necklaces, bangles, rings, earrings), coins, bars, or any gold kept for saving or investment. Weigh it all together. If you have 24-carat, 22-carat, or 18-carat gold, use the actual gold weight (pure gold content), not the total weight of the piece. Many jewelers in Kashmir and India can help you determine the pure gold weight.
Step 2 — Check the nisab: Is your total gold 85 grams or more? If yes, Zakat is due. If no, you are not required to pay Zakat on gold this year. (Note: You may still have Zakat due on cash, silver, or other assets—that is a separate calculation.)
Step 3 — Find the current market value: Check today's gold rate (you can find it in newspapers, online, or at your local jeweler). Multiply your gold weight in grams by the rate per gram. For example, if you have 100 grams of gold and the rate is ₹6,000 per gram, your total value is ₹6,00,000.
Step 4 — Calculate 2.5%: Take the total value and multiply by 0.025 (or divide by 40). In our example: ₹6,00,000 ÷ 40 = ₹15,000. That is your Zakat on gold for that year.
A Simple Example for Beginners
Suppose Sister Fatima in Srinagar has: a gold necklace (30 grams), a pair of bangles (40 grams), and a ring (20 grams). Her total gold is 90 grams—above the nisab of 85 grams. She has held this gold for more than one lunar year. The current gold rate is ₹6,500 per gram. Her total value: 90 × ₹6,500 = ₹5,85,000. Her Zakat: ₹5,85,000 ÷ 40 = ₹14,625. She should give this amount to the poor and needy, or through a trusted organization like Kashmir Imdaad Foundation.
Sahih Bukhari — The Prophet (peace be upon him) said: "There is no Zakat on less than five awsaq (of dates), no Zakat on less than five awaq (of silver), and no Zakat on less than five camels."
Practical Points for Our Kashmiri Audience
What counts as gold? Jewelry you wear daily, jewelry you keep in a locker, gold coins, gold bars, and any gold held for savings or investment—all of these count. Some scholars say that jewelry worn regularly by women purely for adornment may be exempt; however, the majority view is that all gold above the nisab is subject to Zakat. We advise you to follow the opinion of your trusted scholar or to take the safer view and include all gold.
Use the current market rate on the day you pay Zakat, not the rate at which you bought the gold. In India, gold rates change daily; check the rate for 24-carat gold in your city.
Quran 2:261 — "The example of those who spend their wealth in the cause of Allah is like a seed that grows seven ears, each bearing a hundred seeds. And Allah multiplies for whom He wills."
We Are Here to Help You
If you find this confusing or need help calculating your Zakat—whether on gold, silver, cash, or other assets—please do not hesitate to reach out. Our team at Kashmir Imdaad Foundation is here to assist you with understanding your obligation and making the calculation easier. You can contact us through our website, and we will be happy to guide you. May Allah make this act of worship easy for you and accept your charity.
For assistance with Zakat calculation, please visit our contact page — we are here to help you. May Allah make it easy.