Confused about the Nisab threshold? Learn exactly how to calculate your annual Zakat on gold ornaments and bullion in Pakistan.
Understanding the Nisab for Gold
In Islamic jurisprudence, Zakat becomes obligatory when a Muslim owns wealth exceeding the Nisab threshold for one lunar year. For gold, the Nisab is universally accepted as 87.48 grams (or approximately 7.5 tolas).
Calculating the Value
If you own 7.5 tolas of gold or more, you must pay 2.5% of its current market value. Always calculate Zakat based on the current market price of your gold, not the price at which you bought it.
Does Purity Matter?
Yes. If you own 22K gold jewellery, you calculate its value based on the 22K gold rate, not the 24K rate. However, Zakat is calculated on the total weight of the gold, excluding the weight of any embedded stones or gems.