Sheikh Ahmad Kutty, a senior lecturer and Islamic scholar at the Islamic Institute of Toronto, Ontario, Canada, states: “The proper way to go about giving zakah on jewelry is to get it estimated every year and pay zakah on it at the rate of 2.5% of the total estimated value.
If, however, you are using part of the jewelry, then you are allowed to keep up to a maximum of seven tolas (equal to 180 grains or 0.4114 avoirdupois ounces (11.7 grams). This much is considered as exempt from zakah. The rest of the jewelry is subject to zakah; it is due every year on this portion at the rate of 2.5% of the total estimated value.
When to Pay Zakah on Jewelry
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