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But the customary practice in the Islamic world has been that the amount of zakat paid on capital assets (e.g. money) is 2.5% (1 ⁄ 40). [42] Zakat is additionally payable on agricultural goods, precious metals, minerals, and livestock at a rate varying between 2.5% and 20% (1/5), depending on the type of goods. [43] [44]
Note 1] The Quran does not provide specific guidelines on which types of wealth are taxable under the zakat, nor how much is to be donated, and Islamic scholars differ on how much nisab is and other aspects of zakat. [16] However, the amount of zakat paid on capital assets (e.g. money) and stock-in-trade and jewelry is customarily 2.5% (1/40). [8]
The word sadaqa is interchangeably used with zakat and nafaqa in some contexts, [3] but while zakat is obligatory, sadaqa usually refers to voluntary donations. [ 1 ] Zakat is a required minimum contribution by Muslims in terms of money and property or goods that can help Muslims who need assistance, while sadaqah can be in the form of money ...
Zakat is obligatory when a certain amount of money, called the nisab (or minimum amount), is reached or exceeded. Zakat is not obligatory if the amount owned is less than this nisab. The nisab of gold and golden currency is 20 mithqal, or approximately 85 grams of pure gold. One mithqal is approximately 4.25 grams.
In Sharia (Islamic Law) niṣāb (نِصاب) is the minimum amount of wealth that a Muslim must have before being obliged to give zakat. Zakat is determined based on the amount of wealth acquired; the greater one's assets, the greater the zakat value. Unlike taxable income in secular states, niṣāb is not subject to special exemptions.
zakat - one of the five pillars of Islam. Only imposed on Muslims, it is generally described as a 2.5% tax on savings to be donated to the Muslim poor and needy. [1] [2] It was a tax collected by the Islamic state.
A money market account works like your typical savings account: You deposit money into your account, and your deposit attracts an interest rate that compounds daily or monthly.
Nizari Ismā'īlīs donate 10% to 12.5% of their monthly net income (after taxes, basic living necessities and debt repayment) to the Imām, an amount which includes zakat and khums. Part of this money is typically paid to organizations run by the Aga Khan Development Network , one of the biggest welfare networks in the world.