Zakaat - Rules and modern issues

How to calculate Zakaat – At a glance

Zakaat becomes Compulsory 1 lunar year from the date when one’s wealth meets the prescribed criterion of Zakaat.  The increase in the course of the year also should be considered.  One should carefully search for all avenues where one might have invested wealth.  The quantity of gold and silver should be calculated.  The amount under fixed deposit (if any) should also be included.  The amount in bonds also should be included.  Provident fund also should be included.  Shares of various companies also should be included.  If one holds any insurance policy, then the amount paid in it till now should also be included.  If one is a businessman, then the value of all trade goods should also be included.  If any loan has been given to anybody, it should also be included.  The amount in bank accounts should also be included.

After calculating the total value of all forms of wealth that one possesses, loans payable to anybody should be subtracted.  The 40^th part (i.e. 2.5%) of the remaining wealth should be given as Zakaat.  It should be given on the completion of 1 lunar year.