Nisab is a term used in Islamic finance and economics, particularly in the context of Zakat (charity) and tax calculations. It refers to the minimum amount of wealth or assets that a person must possess in order to be liable for Zakat or other Islamic taxes.
The concept of Nisab serves to exempt low-income individuals or those with limited assets from paying Zakat or other Islamic taxes, while ensuring that those with sufficient wealth contribute to the welfare of the community.
£0.00
Based on the gold price of £0.00 per gram
£0.00
Based on the silver price of £0.00 per gram
The purpose of Nisab is to provide a fair and just threshold for determining Zakat eligibility, while promoting economic growth, fairness, and social welfare.
The Nisab threshold is the minimum amount of wealth a Muslim must possess before being obliged to pay Zakat. There are two values used to calculate the Nisab threshold: gold and silver.
There are two Nisab standards, gold and silver, instead of one. This is because during the Prophetic era, Dinar (gold) and Dirham (silver) were used interchangeably in markets, with an exchange rate of 1:10. As a result, the Zakat payer's liability remained equivalent in terms of purchasing power. However, in today's context, the gold and silver Nisab values have diverged significantly. Consequently, the silver Nisab is often recommended as the benchmark for determining Zakat obligations.
Ultimately, the choice between the gold and silver standards depends on your personal preference, financial situation, and the guidance of your Islamic scholar or authority. If you're unsure, you can consult with a trusted Islamic scholar or financial advisor for guidance.
The gold Nisab has a higher value, making it a more conservative approach, while the silver Nisab has a lower value, making it a more lenient approach.
It is recommended to check the Nisab threshold regularly, especially if you have fluctuating wealth. Since the Nisab value is based on the current market price of gold and silver, reviewing it monthly or at least once a year before giving Zakat is advisable.
Yes, the Nisab threshold changes based on the market price of gold and silver. As these values fluctuate, the Nisab amount in your local currency may also vary. It is essential to refer to updated sources or reliable financial platforms to determine the current threshold.
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