Minimum Taxable limit of silver
1905. There are two minimum taxable limits for silver:
Firstly: The first is 105 ordinary Misqals or which is prevalent in the market, therefore, when the quantity of silver reaches that limit, and other necessary conditions are also fulfilled, one should pay 1/40th of it as Zakat which is equal to 2 Misqals and 15 Nukhud. And if the quantity of silver does not reach the aforesaid limit, it is not obligatory to pay Zakat on it.
Secondly: The second limit of silver is when there is an addition of 21 Misqals, that is, if an addition of 21 Misqals takes place to 105 Misqals, the Zakat should be paid on 126 Misqals, Zakat will be paid according to the mentioned proportion. If the addition is less than 21 Misqals he should pay Zakat on 105 Misqals only, and no Zakat is payable on the additional quantity.
The same rule applies as and when ongoing additions take place in the quantity of silver, like, if 21 Misqals are further added, he should pay Zakat on the entire quantity and if the addition is less than that the quantity which has been added and is less than 21 Misqals, is not liable to any Zakat.
Thus, if a person gives 1/40th of all the gold or silver he possesses, he will have paid the obligatory Zakat, and sometimes even more than that. For example, if a person has 110 Misqals of silver and gives 1/40th of that, he will have paid Zakat on 105 Misqals which was obligatory, and also on 5 Misqals which was not obligatory.
1906. If a person possesses gold or silver which has reached the taxable limit, and even if he has paid Zakat on it, he should continue to pay Zakat on it every year, as long as it does not reduce from the minimum taxable limit.
1907. Zakat on gold and silver becomes obligatory only when they are made into coins, and are used as currency for transactions, even if the engraving of the coin cannot be seen, it is obligatory to pay Zakat on it.
1908. It is obligatory, as per precautionary measures, to pay Zakat on coined gold and silver worn by women as ornaments, as long as such coins are legal tenders, that is, transactions are made with them as gold and silver currency. If the transaction with such coins are not prevalent, even if it is called as coins, Zakat will not be obligatory upon them.
1909. If a person possesses gold and silver neither of which is equal to the first minimum taxable limit, for example, if he has 104 Misqals of silver and 15 ordinary Misqals of gold, it is not obligatory for him to pay Zakat.
1910. As stated earlier, Zakat on gold and silver becomes obligatory only when its taxable quantity is owned by a person for 11 months continuously. If, therefore, the quantity falls below the taxable limit at any time during the period of 11 months, it is not obligatory for him to pay Zakat on them.
1911. If during the period of 11 months, a person who possesses gold and silver exchanges them with another gold and silver or for something else, or melts them, it is not obligatory for him to pay Zakat on them. However, if he changes them to avoid payment of Zakat, as per recommended precaution, he should pay Zakat.
1912. If a person melts gold and silver coins in the twelfth month, he should pay Zakat on them, and if their weight or value is reduced because of melting, he should pay Zakat which was obligatory on those coins before they were melted.
1913. If gold and silver possessed by a person is partly of superior quality and partly of inferior quality, he can pay Zakat of each from its respective quality. However, it is recommended that he should give the entire Zakat based on the gold and silver of superior quality.
1914. If gold and silver coins have more than usual quantity of alloy, but if the quantity of pure gold and silver present in it reaches the minimum taxable limit, payment of Zakat on them is obligatory. If one doubts whether or not the quantity of pure gold or silver has reached the minimum taxable limit, as per obligatory precaution, by melting it down or by any other mean possible one should find out the quantity of pure gold or silver.
1915. If a person possesses gold and silver coins which have usual amount of alloy in them, he cannot pay Zakat on them with gold and silver coins which contain more than usual quantity of alloy, however, there is no objection if one pays a significant amount from such gold or silver coins, which has more than usual quantity of alloy, which ensures him that he has paid the equivalent quantity of pure gold or silver which was obligatory upon him as Zakat.