Zakat on Pure Gold and Gold Jewellery

I. Zakat on Pure Gold and Gold Jewellery

Zakat should be calculated on Pure Gold and jewellery at a value as on the date of Valuation. There are different opinions on the value to be adopted for valuation (i.e.) Purchase price or Market price. Most of the Ulema have favoured Market value prevailing as on date of valuation of Zakat and not the Purchase price. A deduction of 2% from the weight of Jewellery is allowed towards studded stones as Zakat is not payable on any kind of stones including diamonds, rubies, emeralds, pearls etc. If there are rows of pearls or any other beads you have to make a rough estimate and deduct from the total weight of the article.

You may deduct 4 grams from the total weight of the jewellery item if there is a dory (thread for tying at the back).
For Kundan Jewellery, deduct 25% from the weight for lac. Zakat is payable on precious and semi precious stones, if you are in the Jewellery business. The amount receivable on credit sales is to be added to the total value and the amount payable to your suppliers or loans taken if any for the business is deducted to arrive at the net value on which Zakat is due and payable.

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