alculation of Zakat
In order to calculate Zakat, individuals have to add the monetary value of all accountable assets together. Again, only those assets are accountable that have been in your possession for at least a lunar year. Liabilities are also calculated and subtracted from the total and 2.5% is given out of the final sum.
Example
Let’s assume you have 100g of gold, 5 lacs in cash, lend PKR 1 lac to someone, and owe 50,000 PKR to someone else. This is how you would calculate the Zakat:
Total Assets
1g of 22 Karat Gold = 9,869.51
100g of 22 Karat Gold = 9869510
Cash = 500,000
Loan to others = 100,000
Cumulative Assets = 10,469,510
Zakat = Cumulative Assets – Liabilities
10,469,510 – 50,000 (amount you owe in loan) = 10,419,510
10,419,510 is the monetary value of the total asset that you own. Now the owed Zakat is 2.5% of this amount and that will be 260487.75.
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