What is Zakat?
An annual 2.5% alms on qualifying wealth above the nisab — one of the Five Pillars of Islam.
Zakat is 2.5% of net zakatable wealth (cash, gold, silver, investments, business assets, minus immediate debts) once it exceeds the nisab and has been held for a lunar year (hawl).
Example
Net wealth 900,000 → Zakat 22,500.
What counts as zakatable wealth
Zakat is due on your net productive wealth: cash and bank balances, the value of gold and silver, shares and other investments, money owed to you that you expect to receive, and business inventory. From that total you subtract short-term debts and immediate liabilities. Your home, car and personal belongings that you use are not counted.
Nisab and the lunar year
Zakat is only due if your net zakatable wealth stays above the nisab threshold for one full lunar (hijri) year. Nisab is set by the value of 87.48g of gold or 612.36g of silver; many scholars recommend using the lower silver figure so that more people give. The rate is 2.5% of the qualifying wealth, traditionally distributed to eight categories of recipients named in the Qur'an.