# ZAKAT

## Zakat Calculation and Payment

Zakat is one of the pillars of the Islamic faith. It means you donate some of your personal wealth to those in need. Zakat purifies your spirit and brings you closer to Allah, or God. Learn how to calculate your personal zakat so you can fulfill your spiritual duties.

### Determining the Threshold

1.Calculate the Nisab - Nisab is the threshold or cut-off amount. If your personal wealth, or what you own, is more than the nisab, you owe zakat. If your personal wealth is below the nisab, you don’t owe zakat. You use either the current market price of gold or silver to calculate nisab. Always check current market rates, as gold and silver prices fluctuate. Choose either the gold or silver rate, not both. The nisab is the cash equivalent of 3 ounces/87.48 grams of gold or 21 ounces/612.36 grams of silver. For example, if each ounce of silver is currently worth Rs.1,955 the nisab using the silver calculation is Rs 1,955 (Rs1,955 X 21 ounces = Rs41,055). If your personal wealth is above Rs41,055 you owe zakat.

2.Determine your cycle dates - Zakat is an annual duty. It’s due one lunar year, or hijiri, from the first day you exceeded the nisab threshold or from the day you last paid zakat.

If you know your personal wealth is always above zakat, select any date during the year to pay. Keep track of the date so you remember when it’s due the next year. Many people choose Ramadan as the month they pay zakat. Ramadan is one of the five pillars of Islam. It’s a sacred time when Muslims read the Koran and fast from dawn to dusk. Paying zakat is another way to cleanse the soul during this holy period.

3.Base your calculations on silver. Silver has a lower price than gold. Using silver for the nisab means you’re more likely to exceed the threshold. You’ll be able to meet your spiritual and moral duty to provide for those who are less fortunate.

For example, if each gram of silver is worth Rs.71.60, the nisab using the silver calculation is Rs.43,844 (612.35 grams X Rs.71.60 = Rs.43,844). More people would exceed this threshold rather than the gold threshold.

4.Know the difference between zakat and tax. Zakat is not a tax. It’s a spiritual act to help relieve people’s suffering. In many countries, paying zakat is voluntary whereas paying taxes is mandatory. Zakat directly helps the poor and needy.

Zakat teaches you self-discipline. It helps you focus on helping others rather than on your own possessions and needs. It helps you be a better Muslim and brings you closer to Allah.

1.Identify your assets.Start calculating your assets, or what you own. This is the first step is figuring out how much zakat you’ll pay. You exclude the assets you use for everyday life. For example, your primary residence, car, clothes and business equipment are not used in your zakat asset calculations. It’s based on what’s left after you take care of you and your family’s living expenses.

Some examples of zakat-eligible assets include stocks, savings, investment properties, cash, business income or precious metals such as gold.

Determine how much your zakat-eligible assets are worth for the year.

2.Identify your liabilities. Debt from credit cards, college or other loans subtracts from your personal net worth. These outstanding debts are deducted from your total zakat-eligible assets.

If you obtained a personal loan of any type (car, home, cash), then look at how much you pay per month to your creditors, not the entire outstanding debt.

Add up how much you owe each month to your creditors. Multiple this amount by 12 to calculate your annual liability amount.

3.Determine your zakat net worth.Subtract your liabilities from your zakat-eligible assets. For example, your assets for the year total INR 600,000 and your liabilities total INR 200,000. Your zakat net worth or zakat pool of money is INR 400,000 (INR 600,000 – INR 200,000 = INR 400,000).

1.Compare the nisab with your zakat net worth or pool.If your zakat net worth is more than the nisab, you owe zakat. If it’s less, you don’t owe this year.

For example, your zakat net worth is INR 45,000. Each ounce of silver is currently worth INR 1,955, so the nisab using the silver calculation is INR 41,055, (INR 1,955 x 21 ounces = INR 41,055). You have more than the nisab so owe zakat

2.Give a percentage of your zakat net worth.If you’re over the nisab threshold, give a minimum of 2.5% of your zakat net worth. Give more than 2.5% if you’re financially able.

For example, if your net worth is INR 500,000, you will give INR 12,500, for zakat. (INR 500.000 X .025 = INR12,500). However, give more if you are financially able.

The calculation is slightly higher if you’re using a Gregorian calendar vs. the lunar Hijri calendar. If you’re following the western calendar cycle use 2.577% of your net worth. If you’re following the Hijri calendar, use 2.5% of your net worth.

3.Donate to reputable faith-based charities.To ensure your zakat is going to fellow Muslims in need, donate to a recognized and registered non-profit charity. Ask your local faith community for recommendations. Ask the charity how much of the zakat donations reach people in need, and what the charity’s process is for distributing funds.

SenSage helps you in calculating your zakat and also payment of zakat to needy people.

### Donate Online

##### Disposal of complaints Annual
Year Carried forward Received Resolved Pending
2019 - 2020 0 0 0 0
2020 - 2021 0 0 0 0
2021 - 2022 0 0 0 0
Grand Total 0 0 0 0
Contact us directly at shabbir@sensageonline.com for assistance with any queries, complaints or grievances. We will ensure your grievance is resolved within 30 days. If you feel that your grievance is not redressed satisfactorily, you may lodge a complaint with SEBI through the Scores website or the SEBI Scores app for Android or iOS.
##### Disposal of complaints Monthly
Month Carried forward Received Resolved Pending
February-2021 0 0 0 0
March-2021 0 0 0 0
April-2021 0 0 0 0
May-2021 0 0 0 0
June-2021 0 0 0 0
July-2021 0 0 0 0
August-2021 0 0 0 0
September-2021 0 0 0 0
October-2021 0 0 0 0
November-2021 0 0 0 0
December-2021 0 0 0 0
January-2022 0 0 0 0
Grand Total 0 0 0 0
Contact us directly at shabbir@sensageonline.com for assistance with any queries, complaints or grievances. We will ensure your grievance is resolved within 30 days. If you feel that your grievance is not redressed satisfactorily, you may lodge a complaint with SEBI through the Scores website or the SEBI Scores app for Android or iOS.
##### Disposal of complaints Current Month
Received From Pending- last month Received Resolved Total pending Pending > 3M Avg. resolution time
Investors 0 0 0 0 0 0
SEBI Sources 0 0 0 0 0 0
Other Sources 0 0 0 0 0 0
Grand Total 0 0 0 0 0 0

Disposal of complaints Monthly

Disposal of complaints Annual

Contact us directly at shabbir@sensageonline.com for assistance with any queries, complaints or grievances. We will ensure your grievance is resolved within 30 days. If you feel that your grievance is not redressed satisfactorily, you may lodge a complaint with SEBI through the Scores website or the SEBI Scores app for Android or iOS.
##### Investor Charter
###### Vision

Invest with knowledge & safety.

###### Mission

Every investor should be able to invest in right investment products based on their needs, manage and monitor them to meet their goals, access reports and enjoy financial wellness.

###### Details of business transacted by the Research Analyst with respect to the investors

1. To enter into an agreement with the client providing all details including fee details, aspect of Conflict of interest disclosure and maintaining confidentiality of information.
2. To do a proper and unbiased risk – profiling and suitability assessment of the client.
3. To obtain registration with Know Your Client Registration Agency (KRA) and Central Know Your Customer Registry (CKYC).
4. To conduct audit annually.
5. To disclose the status of complaints in its website.
6. To disclose the name, proprietor name, type of registration, registration number, validity, complete address with telephone numbers and associated SEBI regional/local Office details in its website.
7. To employ only qualified and certified employees.
8. To deal with clients only from official number.
9. To maintain records of interactions, with all clients including prospective clients (prior to onboarding), where any conversation related to advice has taken place.

###### Details of services provided to investors (No Indicative Timelines)

● Onboarding of Clients

1. Sharing of agreement copy
2. Completing KYC of clients

● Disclosure to Clients

1. To provide full disclosure about its business, affiliations, compensation in the agreement.
2. To not access client’s accounts or holdings for offering advice.
3. To disclose the risk profile to the client.

● To provide investment advice to the client based on the risk-profiling of the clients and suitability of the client

###### Details of grievance redressal mechanism and how to access it

1. In case of any grievance / complaint, an investor should approach the concerned Investment Adviser and shall ensure that the grievance is resolved within 30 days.
2. If the investor’s complaint is not redressed satisfactorily, one may lodge a complaint with SEBI on SEBI’s 'SCORES' portal which is a centralized web based complaints redressal system. SEBI takes up the complaints registered via SCORES with the concerned intermediary for timely redressal. SCORES facilitates tracking the status of the complaint.
3. With regard to physical complaints, investors may send their complaints to: Office of Investor Assistance and Education, Securities and Exchange Board of India, SEBI Bhavan, Plot No. C4-A, ‘G’ Block, Bandra-Kurla Complex, Bandra (E), Mumbai - 400 051.