Please make a correction to the third point. For paper currency, the nisab is calculated based on what is more beneficial for the poor, so we take the Silver nisab into account, not the gold.
Gold nisab is only applicable when you have only gold. Silver nisab is applicable when you have mixed wealth.
Please see: https://islamqa.info/en/answers/2795...on-paper-money
Question
How much is the nisaab for zakaah with regard to paper money? Is it possible to calculate the nisaab for money on the basis of the nisaab for gold or silver?
Answer
Praise be to Allaah.
The value of the nisaab [the amount that determines whether zakaah is obligatory; anyone who has more than this is obliged to pay zakaah] for dollars or other currencies is whatever is equivalent to the value of 20 mithqaals [a unit of measurement] of gold or 140 mithqaals of silver at the time when the zakaah is owed. It should be based on whichever of the two works out better for the poor, because the prices of gold and silver vary from time to time and from country to country (Fataawa al-Lajnah al-Daa’imah, 9/257) and because this will be more beneficial to the poor. (Fataawa al-Lajnah al-Daa’imah, 9/254).
Given that currently the price of silver is lower than the price of gold, the nisaab should be based on the price of silver, so if a person’s wealth (in paper money) reaches the nisaab on that basis, he has to pay zakaah. The nisaab for silver is roughly equivalent to 595 grams of silver, so the one who has wealth has to pay 2.5% or 25 out of every 1,000 that he has in currency, after one year has passed). And Allaah knows best.
http://islamqa.org/hanafi/daruliftaa-birmingham/20372
Zakat nisab in terms of money
In the name of Allah, the most Beneficent, the most Merciful.
Answer
Zakat is compulsory upon a person who possesses the quantum of nisab (i.e. 612.35 grams of silver or 87.47 grams of gold or currency, wealth equivalent to that amount) for a complete lunar year; which is over and above his basic needs and also free from debts. (Raddul Muhtar p.5 v.2)
Currently a gram of gold is approximately £26.55. Silver is worth approximately £00.41per gram. Therefore, the nisab for zakat is £251.06p. If you have savings equivalent to £251.06 or more then zakat of 2.5% will be obligatory (Duroos.net).
Only Allah Knows Best
Mohammed Tosir Miah
Darul Ifta Birmingham
http://islamqa.org/hanafi/darulifta-deoband/24667
(1) The zakah is calculated as per the silver nisab which is 52.5 tola i.e. the price of 52.5 tola silver is the nisab of Zakah. If you own this amount of money for one year, you will have to pay its fortieth part (2.5%) as Zakah.
(2) Now, you should remember the month in which you paid the Zakah. The next year in the same month, if you have saved amount equal to nisab or more, then separate 2.5% of the total as Zakah i.e. the 2.5% which you took out will be considered Zakah.
Allah (Subhana Wa Ta’ala) knows Best
Darul Ifta,
Darul Uloom Deoband
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