Zakat on Jewelry
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Question: How does a woman assess the jewelry she intends to pay zakat on? Is it by its value or by its weight? And does she pay zakat on it in gold of the same type, or does she pay it in cash? What is the nisab (minimum threshold for zakah) and the amount of zakat due?
Answer: If the jewelry is prepared for trade, or prepared for something other than use and retention, for example, for something other than use, then zakat is obligatory on it according to a single opinion, without any disagreement among the scholars. Its zakat is based on its value if it is prepared for trade, and that which is displayed for sale is based on its value. So it is appraised, and a quarter of a tenth of its value is paid from it.
As for jewelry that is prepared and set aside for something other than wearing and other than trade, namely for retention, then zakat is considered based on its weight. If its weight reaches twenty mithqals, which is approximately eleven and a half Saudi pounds, then zakat is obligatory on it according to its weight, being a quarter of a tenth. He may pay it from it, and he may pay it and spend it in cash from other things, from paper currency or from silver.
As for jewelry prepared for use, there is disagreement among the scholars as to whether zakat is obligatory on it or not. The correct opinion, which appears to me, is that there is no zakat on it, because jewelry is like clothing, and like livestock and animals that are taken for working on them, or for renting them out, or the like. Likewise, they are taken for riding. There is no zakat on these, even though they are from the types of wealth subject to zakat.
And if they are for increase and growth, they are subject to zakat. But if they are for something other than increase, namely for use, then they are not subject to zakat. Livestock, clothing, and other matters that are not taken for increase and growth and use, including jewelry, are not subject to zakat. This is the basis of this opinion.
Some of the scholars held the view that zakat is obligatory on it, even if it is prepared for use or lending, taking the general texts that obligate zakat on gold and silver. But in my view, this is the weaker position.
Answer: If the jewelry is prepared for trade, or prepared for something other than use and retention, for example, for something other than use, then zakat is obligatory on it according to a single opinion, without any disagreement among the scholars. Its zakat is based on its value if it is prepared for trade, and that which is displayed for sale is based on its value. So it is appraised, and a quarter of a tenth of its value is paid from it.
As for jewelry that is prepared and set aside for something other than wearing and other than trade, namely for retention, then zakat is considered based on its weight. If its weight reaches twenty mithqals, which is approximately eleven and a half Saudi pounds, then zakat is obligatory on it according to its weight, being a quarter of a tenth. He may pay it from it, and he may pay it and spend it in cash from other things, from paper currency or from silver.
As for jewelry prepared for use, there is disagreement among the scholars as to whether zakat is obligatory on it or not. The correct opinion, which appears to me, is that there is no zakat on it, because jewelry is like clothing, and like livestock and animals that are taken for working on them, or for renting them out, or the like. Likewise, they are taken for riding. There is no zakat on these, even though they are from the types of wealth subject to zakat.
And if they are for increase and growth, they are subject to zakat. But if they are for something other than increase, namely for use, then they are not subject to zakat. Livestock, clothing, and other matters that are not taken for increase and growth and use, including jewelry, are not subject to zakat. This is the basis of this opinion.
Some of the scholars held the view that zakat is obligatory on it, even if it is prepared for use or lending, taking the general texts that obligate zakat on gold and silver. But in my view, this is the weaker position.