The Pakistan Collection

Saturday, May 27, 2017

Zakat Calculations 2017

Zakat

The literal meaning of Zakat is ‘to cleanse’ or ‘purification’. In the Islamic faith, Zakat means purifying your wealth for the will of Allah SWT; to acknowledge that everything we own belongs to Allah SWT and to work towards the betterment of the Muslim Ummah. According to Islamic regulations, Zakat is 2.5% of one year’s total cumulative wealth. This amount is then distributed to the poor. Prophet Mohammad (PBUH) has said “Whoever pays the zakat on his wealth will have its evil removed from him”

Sayyidina Ali ibn Abi Talib (karam-Allah Wajhu) reported that Rasul-Allah (sallallahu alaihi wasallam) said: “There is nothing due upon you in gold, until it reaches twenty dinars. Thus, if you have twenty dinars at the end of the lunar year, then there is half a dinar levied on it [as Zakat] and if you have two hundred dirhams and a year passes, then five dirhams are due upon it. Any additional amount will be calculated in this manner. There is no Zakat on property until it has been owned for one year.” (Hadith related by Ahmad, Abu Dawud, and al-Baihaqi).

0.5 dinar / 20 dinars = 0.5/20 * 100 = 2.5%

5 dirhams / 200 dirhams = 5/200 * 100 = 2.5%

Nisab

To be liable for zakat, one’s wealth must amount to more than a threshold figure, termed the “nisab”.

Nisab for Zakat (according to Dinar & Dirham concept)

Gold

20 Dinars (20 * 4.25) = 85 grams (85 / 28.3495231) = 2.99828 Oz = 3 Oz

85 * 4,286/- = Rs. 364,310/- (as of May 27, 2017)

Silver

200 Dirhams (200 * 2.975) = 595 grams (595 / 28.3495231) = 20.9880 Oz = 21 Oz

595 * 63/- = Rs. 37,485/- (as of May 27, 2017)

Cash

equivalent to gold or silver whichever is less

Nisab for Zakat (according to tola concept)

Early dinars were struck of 4.4 grams of gold and 20 dinars equals to approx. 7.5 Tola, and early dirhams were struck of 3.0615 grams of silver and 200 dirhams equals to approx. 52.5 Tola.

Gold

7.5 Tola (7.5 * 11.6638038) = 87.47 grams (87.47 / 28.3495231) = 3.08 Oz

87.47 * 4,286/- = Rs. 374,896/- (as of May 27, 2017)

Silver

52.5 Tola (52.5 * 11.6638038) = 612.35 grams (612.35 / 28.3495231) = 21.60 Oz

612.35 * 63/- = Rs. 38,578/- (as of May 27, 2017)

Cash

equivalent to gold or silver whichever is less

Notes

1 Oz = 28.3495231 grams

1 Tola = 11.6638038 grams

Saturday, April 01, 2017

Commemorative Coin - Abdul Sattar Edhi (50 Rs)

Keeping in view the meritorious services rendered to humanity in general and Pakistanis in particular, the Federal Government issued a Commemorative Coin of Rupees 50 in memory of late Abdul Sattar Edhi on March 31st, 2017. The approval was given by the cabinet meeting held on July 15, 2016, hence year 2016 is marked on the coin instead of 2017.

Sunday, January 01, 2017

Security Features of Current Circulating Prize Bonds

Prize Bonds are bearer type of security available in the denominations of Rs.100, Rs.200, Rs.750, Rs.1,500, Rs.7,500, Rs.15,000, Rs.25,000 and Rs.40,000.

These bonds are issued in series. Each series consist of one less than 1,000,000 bonds. No fixed return is paid but prize draws are held on quarterly basis. The draws are held under common draw method and the number of prizes are same for each series. It means that if 50 series of Rs.200 Prize Bond are in circulation. Then on each draw we have 50 winners of 1st prize and 250 winners of 2nd Prize and so on.