Does Zakat on Gold Have to Be Paid in Gold? Here's the Ruling
Jakarta (ANTARA) - Gold is a type of wealth subject to zakat once it meets specific requirements under Islamic law. However, many Muslims still seek clarification on the proper mechanism for paying zakat on gold in accordance with religious provisions.
In practice, zakat on gold does not have to be paid in the form of gold. According to Islamic law, zakat on gold can be fulfilled using the gold itself or with money equivalent to the value of the obligatory zakat amount, provided the calculation is based on the gold price at the time of payment.
Zakat on gold is part of zakat mal, which must be paid when gold holdings reach the nisab of 85 grams of pure gold and have been owned for one Hijri year (haul). The amount of zakat due is 2.5 percent of the total gold that meets these conditions.
The obligation of zakat on gold is grounded in the Quran. Allah SWT says in Surah At-Taubah, verse 34: “And those who hoard gold and silver and spend it not in the way of Allah - give them tidings of a painful punishment.” (QS. At-Taubah: 34).
A hadith narrated by Abu Dawud and deemed authentic by several scholars states: “There is no zakat on gold until it reaches twenty dinars. When it reaches twenty dinars and a full year has passed, then the zakat due is half a dinar.”
The National Amil Zakat Agency (BAZNAS) explains that zakat on gold can be paid in gold or in money equivalent to the obligatory zakat amount. Payment using money is permitted as long as the nominal value follows the gold price at the time of payment, ensuring the zakat value remains compliant with sharia provisions.
As an illustration, a person who owns 100 grams of gold bullion for more than one Hijri year has met the nisab and must pay zakat of 2.5 grams of gold or money equivalent to the price of 2.5 grams of gold on the day of payment. This method is widely adopted by amil zakat institutions as it facilitates the collection and distribution process to mustahik.
Regarding gold jewellery worn daily, scholars hold differing opinions. Some argue that jewellery worn reasonably is not subject to zakat, while others obligate zakat if the amount reaches the nisab. Therefore, individuals with specific gold ownership conditions are advised to consult zakat institutions or local scholars to ensure their zakat payment aligns with the fiqh provisions they follow.