Answered by Shaykh Ilyas Patel
Brother, please could you tell me how is the nisab (minimum amount you have to possess) to be eligible to pay zakat calculated? Does it differ from place to place, and in view of the basic ‘cost of living’ as they might say, or is it set as the same amount, wherever the place, and the time? If it is the latter, please could you tell me how much it is, and how it is calculated (preferable in Pounds, but if you give it in your local currency, I can maybe work it out how much it is in pounds from here (www.xe.com))? Also, what if a person does not possess any cash (i.e. paper money or coins that are regarded as the currency in that place) but has lots of other valuable things, such as books, a bed, a computer, etc. etc. and the value of all these things put together comes to be over the nisab. Does he have to pay Zakat?
Walaikum assalam,
A1) The nisab (minimum amount you have to possess) is
Gold- 20 Dinars or 7.5 Tolas or 87.48 grams, which comes to ?572.57 British pounds (correct for Nov 6th 02)
Or
Silver-200 Dirhams 52.5 Tolas or 612.36 grams or 19.6875 which comes to ?56.50 British pounds ((correct for Nov 6th 02)
Since the time of the Prophet (Allah bless him and give him peace) the price of silver has drastically fallen whereas the price of gold has risen. Hence the drastic difference between the current figures for the Nisab of gold and the Nisab of silver. The principle of Anfa’li-Fuqara (what is more beneficial to the poor and recipients) is applied whereby that which is most beneficial to the recipients of Zakat is taken into account by some scholars. Hence the nisab of silver is applied as the standard Nisab. Therefore if the total value of your excess wealth is ?56.50 or more than you are liable to pay Zakat.
A2) Yes, one has to pay Zakat even though he has only material assets and not liquid assets.
Wassalam,
Ilyas Patel