zakatable

Zakatable refers to an asset or source of income that is considered subject to the Islamic charitable obligation known as zakat. The term is derived from zakat, the obligatory almsgiving contribution that constitutes a fifth of an individual's yearly accumulative wealth beyond a specified nisab threshold. By extension, the suffix “‑able” indicates the condition of being eligible or qualified for zakat. While not a formal legal term in most contemporary Islamic finance literature, zakatable is occasionally used in academic discussions, textbooks, and some community guides to describe the categories of wealth that incur zakat.

In the traditional framework of zakat, the primary zakatable assets include cash, gold, silver, savings, business inventories, shares, and agricultural produce that meets the nisab and haya (harvest) requirements. Modern Islamic finance institutions often extend the concept to include financial instruments such as interest‑free endowments, certain Sukuk contracts, and some forms of property investments, provided the assets meet the minimum thresholds and are actively generating income. The term is also applied to intangible wealth such as knowledge and skills that generate a monetary return, where the ruling regarding zakat may be subject to scholarly debate.

Zakatable items are distinguished from non‑zakatable items, which typically comprise everyday consumables, debt instruments, or low‑value holdings that do not exceed the nisab. Accurate identification of zakatable assets is essential for compliance with Sharia law and for Islamic tax collection, charitable distribution, and financial planning. As contemporary financial products evolve, the definition of what constitutes zakatable can expand, prompting scholars to revisit eligibility criteria and calculation methods.