Zakat and the Taxable Limit of Gold
1904. There are two taxable limits of gold: The first limit is 20 mithqals (legal).one mithqals being equal to 18 barley grains. Hence when the quantity of gold reaches 20 mithqal (15 current mithqals) and other requisite conditions are also fulfilled, one should pay 1/40th part of it (which equals 9 barley grains) as Zakat. In case. however, the quantity of gold does not reach this limit, it is not obligatory to pay Zakat on it. The second taxable limit of gold is an enhanced 4 mithqals (3 current mithqals) viz. if an addition of 3 current mithqals takes place to 15 current mithqals, one should pay Zakat on the total quantity (18 current mithqals) at the rate of 2 1/2%. In case, however, the addition is less than 3 current mithqals Zakat will be payable on 15 current mithqals only; and it will not be obligatory to pay it on the additional quantity. The same rule applies as and when further additions take place in the quantity of gold i.e. if a further increase of 3 mithqals takes place Zakat should be paid on the entire quantity, and if the increase is less than that no Zakat is payable on it.
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