Sir i want to know how the rate for zakat can b calculated and what are the conditions.and also my relative have gold and he hasnt given zakat. he has this gold for round about 10 years.will he give this previous zakat or not because its alot of money to give coz its combined or he just have to give the present … please explain…
In the name of Allah, the most Beneficent, the most Merciful.
Zakat is compulsory upon a person who possesses the quantum of nisab (i.e. 612.35 grams of silver or 87.47 grams of gold or currency, wealth equivalent to that amount) for a complete lunar year; which is over and above his basic needs and also free from debts. (Raddul Muhtar p.5 v.2)
Therefore if an individual has in his possession wealth which is free from his basic needs and this amount after deduction of liabilities exceeds the quantum of nisaab then it will be compulsory to pay zakat (2.5%) upon passing of a complete lunar year.
Currently a gram of gold is approximately £26.55. Silver is worth approximately £00.41per gram. Therefore, the nisab for zakat is £251.06p. If you have savings equivalent to £251.06 or more then zakat of 2.5% will be obligatory (Duroos.net)
With regards to your question, your relative will have to give zakat on the gold for the previous ten years. He should calculate how much gold he had ten years ago and put an approximate price of gold which was at that time. For example, ten years ago he had 100 grams of gold, which was worth £1,000. Then, 2.5% of that amount should be multiplied by ten and the total amount should be given for zakat.
Only Allah Knows Best
Mohammed Tosir Miah
Darul Ifta Birmingham