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Zakat is one of the Five Pillars of Islam. It is a mandatory religious obligation for all Muslims who meet the necessary criteria of wealth to donate a specific portion of their wealth (usually 2.5%) each year to charitable causes.
Nisab is the minimum threshold of wealth a Muslim must possess for a full lunar year before becoming liable to pay Zakat. It is typically calculated based on the current market value of 87.48 grams of gold or 612.36 grams of silver.
Zakat is calculated as 2.5% of a Muslim's total savings and wealth (Total Assets) that are above the Nisab threshold, after deducting any justifiable liabilities and immediate debts.
No, Zakat is not due on personal use items such as your primary residence, personal vehicle, clothing, or household furniture. It applies to surplus wealth like cash, gold, investments, and business inventory.
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