Glossary
Zakat
زكاةDefinition
The annual obligatory almsgiving — typically 2.5% of qualifying wealth held for a lunar year above the nisab threshold.
Trading assets, gold, silver, cash, and most investment holdings are zakatable. Calculations for actively traded stocks, crypto, and business inventory have specific methodologies in the fiqh.
Zakat is calculated on the market value of qualifying assets on the zakat anniversary date, not on annual income.