Zakah

A fundamental obligation in Islam

Summary of presentation Concept of Al Mal

What is Zakah?

Significance of Zakah

What are Zakatable assets?

Is Zakah compulsory?

Nisab

How to calculate your Zakah?

Recipients of Zakah?

Common misconceptions.

Common questions about Zakah

Concept of Al Mal Al Mal is any thing that has a value and

Can be owned. It is of 2 types:

1. Tangible: such as money and commodity

2. Intangible, e.g.,

Manfa’ah- right of using or enjoying something which belongs to someone else such as copyright or intellectual property

Allah (SWT) is the true owner of Al Mal To Him belongs everything what is in the heavens and

the earth and all between them and all beneath the soil. (Al Quran)

Therefore regarding earning and spending, one must abide by the rules of the true owner of Al Mal, Allah (SWT).

Such rules can not be changed by any one.

What is Zakah? Literally Zakah means purification, growth and

increase.

In Islamic terminology, Zakah means: A fixed portion collected from a specific types of Mal (wealth) when they reach a specific amount, at a specific time which must be distributed to a specific categories of people to seek the pleasure of Allah (SWT).

Benefits of Zakah It helps Muslim to fulfill his/her obligation (farad)

Muslim expresses his/her thankfulness to Allah (SWT) for His bounties.

He purifies his heart and Soule from Bukhal or miserliness.

It has deep humanitarian and socio political value.

Significance of Zakah in IslamSurah 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. Taubah 9,34

Surah Taubah 9:35

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!"

Hadith The prophet (pbuh) said: "Any owner of gold and

silver who does not deliver from them their right, on the Day of Qiyamah (Day of Judgment), (the gold and silver) will be shaped as foils of fire. Then it will be heated in the fire of Hell; (and) then with it he will be ironed on his side, his forehead, and his back" (Muslim).

Hadith The Prophet said: 'Charity is a necessity for every

Muslim. ' He was asked: 'What if a person has nothing?' The Prophet replied: 'He should work with his own hands for his benefit and then give something out of such earnings in charity.' The Companions asked: 'What if he is not able to work?' The Prophet said: 'He should help poor and needy persons.' The Companions further asked 'What if he cannot do even that?' The Prophet said 'He should urge others to do good.' The Companions said 'What if he lacks that also?' The Prophet said 'He should check himself from doing evil. That is also charity.'

Zakatable assets Monetary wealth ( gold, silver, cash)

Trade goods

Livestock ( camel, cattle, sheep, goats etc.)

Crops ( This includes agricultural produce of the kind which can be stored for long period of time)

Pre requisites of Zakah Nisab ( Minimal Zakatable assets)

Full ownership of Nisab

Completion of one full year

Nisab of Zakah on monetary wealth Gold: Nisab of gold is 20 mithqal.

One mithqal=4.25 grams

Nisab of gold= 85 grams

Silver: Nisab of silver is 200 dirham.

One dirham=0.7 mithqal

Nisab of silver is 200x0.7x4.25=595 gram

Cash: Nisab of paper money is nisab of silver

Amount of Zakah 1/40th or 2.5 % of gold, silver or paper money in his

possession if equal or more than the nisab.

Zakah of trade goods Trade goods are all goods which have been purchased,

acquired or manufactured with the primary intention of re sale.

They are Zakatable weather they stay in the possession of the purchaser for a considerable period of time before he sells them or they are subject to constant turnover likes stocks.

Nisab of trade goods= Nisab of silver

Amount of Zakah-1/40th or 2.5% of the value of the goods

Debts and Zakah There are two types of debts:

1. Those that you owe to other people. This amount is subtracted from the amount of monetary wealth you own for Zakah calculation

2. Those other people owe to you

2nd type of debt which people owe to you which is equal to the nisab or more and is outstanding for a year or more. Two scenarios:

1. It is owed by someone who admits it an is willing to pay it. In this case you owe the Zakah on it. You have the option not to pay till the debt is paid.

2. It is owed by someone who admits it but he has difficulty in paying, or is delaying it or denies it. You do not have to pay Zakah on it. When it is paid, you should pay Zakah for one year even though it was with the debtor for several years.

Recipients of the Zakah. " The alms are only for the poor and the needy,

and those who collect them, and those whose hearts are to be reconciled, and to free the captives and the debtors, and for the cause of Allah, and (for) the wayfarers; a duty imposed by Allah. Allah is knower, Wise." (Surah Taubah: 9:60).

Who can not receive Zakah? A rich person ( with Zakatable nisab)

Descendants of Banu Hashim (Prophet’s family)

Father and mother

Grandfathers and grandmothers and beyond

Sons and daughters

Grandsons and grand daughters and beyond

Spouse

Misconceptions Nisab can be excluded from Zakatable assets? No

Zakah can be given on behalf of mature children/wives without their consent. No

Zakah may be dispensed by feeding the poor. No

Zakah is a form of Islamic tax. No

We can use the price we bought the gold and silver for. No

Common misconceptions Zakah can be used to build Islamic institutes. No

Zakah is to be given on items not used/needed. No

Zakah is to be given in Ramadan. No

My Zakah is given once I have given it to Zakah collector. No

Common Question. What if someone who did not pay Zakah dies?

Their Zakah will not be paid unless there is a wasiyyah(bequest) and it does not exceed 1/3 of the assets. If wasiyyah is not made, the heirs may pay it out of their share voluntarily.

Have just jewelry and no cash.

Part of the jewelry is to be pawned or sold and the Zakah is paid out of cash proceeds.

Common questions What about immature children? Do we have to pay

Zakah for them?

No but this is as long as they are the rightful owners of the zakatable assets.

Does Zakah has to be given as money?

No. It can be given as any item of value or use.

Can Zakah be given in advance?

Yes, but adjustment will have to be made for increase on the value of the assets on the fixed date.

Common questions Can Zakah be given after its date?

Yes, but again adjustment will have to be made on the increase in value of assets after fixed date.

Can you disguise Zakah as a gift?

Yes, but intention of Zakah is to be made while transferring the ownership to the recipients.

Common questions Can a large sum of Zakah money could be given to one

poor person?

Yes as long as the poor person does not become owner of the nisab. It is easier to give it to one who is the breadwinner for a number of family members. Then the Zakah money is distributed upon the whole family.

We urge you to calculate your Zakat now and to pay it as soon as possible.

Zakah calculator Please download it from

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