Question 328: Asalamualaikum. Dear Sheikh,If I am a goldsmith ,is it halal/haram for me to give zakat from my earning from such business(i.e.gold)? Thank you
Answer 328: This question has different assumable cases:
1- If gold meets the criterion of being made into coins, and is in currency for transactions, is in one’s possession, and reach the taxable limits, zakat will apply.[1] But if these coins are made into ornaments and used by women as ornaments, e.g., necklaces and bracelets, then zakat will no longer apply.[2]
Note: Zakaat [obligatory charity] must be paid on gold if it reaches the Nisaab [i.e. the minimum amount liable for Zakaah], which is 20 Mithqaal [a measure which equals 70 grams of pure gold, according to most of scholars], this means that one should pay ½ a Mithqaal as Zakaat, i.e., 2.5% of the value of gold. If 4 Mithqaal is added to the previous mentioned value, 2.5% of gold should be paid again as the liable amount of Zakaah.[3]
2- If gold do not meet the criteria mentioned above, like in the case where they aren’t used as currency in transactions, then zakat will not apply. [4] Based on this, since the gold used today isn’t used as currency, zakat does not apply to it.[5]
However, if a khums year passes and you have other required conditions (which have been mentioned in Tawzih al-Masael of maraja’ (ha)), you are just supposed to pay Khums.
For further information in this regards, please refer to the following answer:
Index: Zakat and difference between Sayyid and non-Sayyid holms, answer 040.
Index: How to calculate Khums on a house purchased with Sahm e Sadat, answer 046.
Index: Khums in the Holy Quran and Traditions / Things on which Payment of Khums is Obligatory, answer 043.
Index: Obligatory of paying knums on wife’s dowry, answer 042.
Index: Obligatory of paying Khums on a plot of land you have the intention to sell it, answer 567.
Index: Impermissibility of giving Sadat portion of Khums to a non-Ithna Ashari Sayyid, answer 041.
Index: Khums on household items received from parents, answer 038.
Index: Obligatory of Khums on savings exceeds a person’s expenditures, answer 559.
Index: Zakat of Fitrah, Zakãt al-Abdan (or Zakãt of Bodies), answer 045.
Index: Things on which Payment of Zakàt is Obligatory or Recommended, answer 044.
Index: Zakat of Gold and Silver and its criterion, answer 039.
[1] . An inquiry from the office of the Supreme leader; Imam Khomeini, Tawdih al-Masa’il (annotated), researched and corrected by: Bani Hashemi Khomeini, Sayyid Mohammad Hosein, vol. 2, pp. 128-132, Islamic Publications Press, Qum, eighth edition, 1424 AH.
[2] . Tawzih al-Masael of maraja’ (with annotation of Imam Khomeini (ra)), Vol. 2, Pg. 129.
[3] . Tawdih al-Masa’il (annotated), vol. 2, pg. 131; Sistani and Saafi Golpaygani (inquiry from their offices); Zanjani: “Gold and silver coins used as currency that women use as ornaments, if are still commonly used in transactions as currency, are subject to zakat, but if they aren’t commonly used in transactions as currency, zakat will not apply, but it is still a recommended precaution to pay their zakat as well.” Tawdih al-Masa’il (annotated), vol. 2, pg. 130.
[4] . Tawdih al-Masa’il (annotated), vol. 2, pp. 128-132.
[5] . Makarem Shirazi (inquiry from office).