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Yes, you can subtract current liabilities from your business assets when calculating Zakat.
Zakat is a yearly obligation of 2.5% on a Muslim’s net wealth, which is calculated by deducting liabilities from total assets.
Here’s a breakdown:
Assets
Include all items of value that can be easily converted to cash, such as:
Liabilities
These are amounts owed, which you can subtract from your assets, such as:
Zakat Calculation
To calculate Zakat:
Nisab Threshold
The Nisab is the minimum amount of wealth required to be eligible for Zakat. It is based on the value of 87.48 grams of gold or 612.36 grams of silver. Since these values fluctuate, the Nisab of Zakat threshold may vary.
By deducting liabilities, Zakat ensures fairness, requiring you to pay only for the wealth you possess and control.
And Allah knows best!
WRITTEN BY
Atta-ur-Rehman
Atta-ur-Rehman, a specialist in Fiqh from Fazal-Jamiat-ul-Uloom-ul-Shariah, Jama'at ul-Umar Karachi, is an expert in Islamic jurisprudence. His expertise spans various aspects of Shariah, including Zakat, financial rulings, family laws, and ethical guidance in everyday life. With a deep understanding of Islamic principles, he provides a reliable insights into matters of faith, worship, and personal obligations.