Nisab Table And Zakat Rates In Ramadan ul Mubarak 2012-13

Nisab is the specific minimum amount in each zakatable category of wealth used for the purpose of calculating Zakat. Nisab is calculated on a possession that remains with one on a zakatable category of wealth after one fulfills all basic living expenses for an entire lunar year. This excludes all existing necessities, such as one’s residence, vehicle, stored food, clothes, and furniture. So if someone makes a large sum of money and spends it all on basic needs--without unnecessary luxury--no Zakat is due at the end of the lunar year. If, however, he or she saved part of that money in that lunar year, then Zakat is payable on that remaining amount, provided it equals or exceeds nisab.