Zakat is one of the five pillars of Islam.
Zakat (alms) is the name of what a believer returns out of his or her wealth to the neediest of Muslims for the sake of the Almighty Allah. It is called Zakat because the word Zakat is from Zakaa which means, to increase, purify and bless.
The obligation is to give 2.5% of one’s wealth to those in need. Zakat is essentially an act of worship through which Muslims can purify their wealth, cleanse their souls and benefit themselves as well as others – it is a symbol of Islamic social justice.
The obligatory nature of Zakat is firmly established in the Qur’an, the Sunnah (or hadith), and the consensus of the companions and the Muslim scholars.
Allah states in Surah at-Taubah: “O ye who believe! there are indeed many among the priests and anchorites, who in Falsehood devour the substance of men and hinder (them) from the way of Allah. And there are those who bury gold and silver and spend it not in the way of Allah. announce unto them a most grievous penalty – On the Day when heat will be produced out of that (wealth) in the fire of Hell, and with it will be branded their foreheads, their flanks, and their backs, their flanks, and their backs.- “This is the (treasure) which ye buried for yourselves: taste ye, then, the (treasures) ye buried!”
(The Holy Qur’an 9:34-35).
Who should pay Zakat?
Every sane, adult Muslim who possesses equal to or more wealth than the Nisab for one lunar year is eligible to pay Zakat.“Nisab” is an Arabic word which means the minimum value of wealth that one must own to become eligible to pay Zakat; in its current monetary value is equal to 87.48grams of gold or 612.36grams of silver.
Zakat is not obligatory if the amount owned is less than this nisab.
How To Give Zakat?
Make a record of all money earned, either daily or monthly, which has reached the nisaab and remains in the treasury. The Zakat of that money would be due one year later on the same day the money was earned and reached nisaab. This means every month’s income must be set aside and assessed for Zakat and so will be the case for the rest of the months.
The best way is to set a day or a month, preferably Ramadan, for your annual Zakat return calendar, say Ramadan 1st. One year later on the same day of Ramadan, your Zakat is due and payable. Whatever is in the savings is due for Zakat, regardless of whether all the amount in the savings reaches a year or not. This method is the best because it is easy to assess, meets one’s obligation and relieve one’s conscience.
TYPES OF WEALTH ON WHICH ZAKAT IS IMPOSED:
- Gold and silver, in any form.
- Cash, bank notes, stocks, bonds etc.
- Merchandise for business, equal to the value of Nisaab.
- Live stock.
- On income derived from rental business.
TYPES OF WEALTH ON WHICH ZAKAT IS NOT IMPOSED:
- On any metals other than gold or silver.
- Fixtures and fittings of a shop, car, trucks or any delivery vehicle etc., which is used in running business.
- Diamonds, pearls, other precious or semi precious stones which are for personal use.
- There is no Zakat on personal residence, household furniture, pots and pan, personal clothing, whether they are in use or not.
- There is no Zakat on a person whose liabilities exceed or equal his assets.
- Home Mortgage is not to be counted as personal liability for the Zakat purpose.
Who is eligible to receive it?
Knowing who qualifies as recipient of Zakat is an important aspect of Zakat collection in Islam. Fortunately, Allah (SWT) has been merciful to us in that He Himself spelled out the people eligible to receive Zakat.
In Surah Tawbah He stated:
“Alms are for the poor and the needy; and those employed to administer (the funds); for those whose hearts have been (recently) reconciled (to truth); for those in bondage and in debt; in the cause of Allah; and for the wayfarer: (thus is it) ordained by Allah, and Allah is full of knowledge and wisdom.”
(Surah 9: Verse 60 )
- People who are in complete poverty and have nothing.
- People who have some wealth, but not enough to meet their basic needs.
- The people who collect Zakat to distribute to the poor and needy.
- People who are sympathetic towards Islam or wish to enter to Islam, and are needy.
- Zakat may be used to free a person from slavery.
- Zakat can be given to those who are in debt and unable to pay off their debt.
- The people who work in God’s way and strive to give Dawah.
- Travellers and/or wayfarers who are needy.
It is, however, permissible to give Zakat to a wife or family member, provided it is not part of their daily living expense money, but is needed to pay off a debt for one’s wife if she can not pay it. So is the case for one’s parents if they can not pay their debt.
PUNISHMENT FOR NOT GIVING ZAKAT:
Allah says in the Quran: “And there are those who hoard gold and silver and do not spend it in the way of Allah, announce to them a most grievous penalty (when) on the Day of Judgment heat will be produced out of that wealth in the fire of Hell. Then with it they will be branded on their forehead and their flanks and backs. (It will be said to them) This is the treasure which you hoarded for yourselves, taste then the treasure that you have been hoarding.”
(Al-Quran 9:34-35)
