What he is saying is totally baseless. First of all, the nisab of gold is 85 grams.

Secondly, the zakat is paid over the whole amount. This means that your zakat is 5 grams of gold.

Dear Sheikh, I have a question about zakah:I have 200 grams gold and I am paying zakat from it.My friend says subtract nasab amount (96 grams) from your gold then pay zakah of it.Meaning, I should pay zakat from 104 grams (i.e. 2.6 grams).I hope you understand.

Zakat | June 2, 2017 4:05 am
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In my village I have poor and needy people who are in need to fresh water. So I have decided to build a fresh water well for them.Can I collect zaakat money for building the well for these poor people.Please advice.