I am in the process of calculating our zakat and want to make sure I get it right. I am adding up all of our cash assets and investments and muliply by 2.5%? Also I have gold from when I was married and do not even know where to begin in calculating the zakat.
We owe on a house and a small loan on a car but I would rather give more than less. My husband and I pay our zakat together is that OK? Also, we send our zakat to Jordan to my father in law and we ask him to give it out on our behalf but specify a few aunts who are in need of the money . .is it OK to specify who to give some of our zakat to in the form of a letter?
The principle in calculating Zakaat is:
1. Add all your cash assets and investments;
2. Weigh all your gold and evaluate them according to the current gold price;
3. There is no Zakaat on personal items, i.e. house, car and household items;
4. Debts are excluded from being Zakaatable. However, if it is a long term debt, e.g. ten year bond, then the debt of only one year will be excluded not the entire debt.
In practise, add your cash, investments, value of gold, subtract the debts and whatever is the outcome, pay 2.5% on that amount. You could specify who you want the Zakaat to be given to. Furthermore, there is no need to state to the recipient that Zakaat is being given. It will suffice to state that amount is a gift.
and Allah Ta’ala Knows Best
Mufti Ebrahim Desai