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No, Zakat does not apply to diamond jewelry.
However, understanding how Zakat works on various forms of wealth, especially gold and silver, is essential when discussing jewelry. Zakat is an obligatory wealth tax for Muslims, due annually on assets such as gold, silver, and other forms of wealth, including jewelry, coins, and ingots.
When it comes to diamond jewelry, the key factor to consider is the gold or silver content, as Zakat is specifically due on these metals, not on the diamonds themselves.
Diamond Jewelry and Zakat
Use of Jewelry
Allah says in the Quran:
“And waste not by extravagance. Verily, He likes not Al-Musrifoon (those who waste by extravagance)”
(al-An’aam 6: 141)
If the jewelry does not exceed the limits of modesty, it is permissible. However, if the items are hoarded excessively or used extravagantly, they fall under the prohibition of extravagance.
Zakat is due on the gold or silver content of diamond jewelry, not on the diamonds themselves. If the jewelry is kept for personal use and does not fall into extravagance, it remains permissible.
However, if the jewelry is prepared for trade or investment, Zakat is due. Always ensure that the gold or silver reaches the nisab of Zakat and has been held for a full lunar year for Zakat to apply.
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.