ZAKAAT

Important Points on Zakaat

1. Zakaat is Farz upon all Muslim adults, who are free from debts & who have possessed wealth for full 12 months. This wealth must be equal to the Nisaab as described in the Zakaat table (see next page).
2. The rate of Zakaat is 2.5 percent on wealth (money, gold or silver).
3. It is Farz to make the Niyyat when giving Zakaat.
4. Zakaat is actually a "religious tax" that is paid by the rich people to the poor.
5. By us paying Zakaat, we are actually cleaning our money.
6. Zakaat also teaches us to be honest in our earnings & business dealings.
7. Zakaat must not be seen as a burden or punishment, but as a form of Ibaadat.
8. Muslims can also help the poor through giving Sadaqa.
9. By giving Zakaat & Sadqa, wealth is being divided among all the Muslims.
10. Zakaat became Farz during 2 A.H.

Whom can Zakaat be given to?

Zakaat can be given to:

1. The poor & needy.
2. A person in serious debt.
3. A traveller who has run short on cash.
4. Students who are not able to pay for their education.
5. Muslims only.

Whom can Zakaat not be given to?

Zakaat cannot be given to:

1. Parents & grandparents.
2. Sons, daughters & their children.
3. A persons wife or husband.
4. Non-Muslims
5. For direct payments of funeral expenses.
6. For the maintenance of the Masjid, its repairs & construction.
7. Persons as salaries or wages.
8. Syed - descendants of Sayyiduna Rasoolullah (sallallahu alaihi wasallam).  

VERSES FROM THE HOLY QURAN

Zakaat is one of the five pillars of Islam. It has been mentioned, along with daily Prayers (Salaat), seventy times in the Qur'an. Allah's Word commanding "... & establlsh regular Salaat & give regular Zakaat" are referred to in many parts of the Qur'an. From this we can conclude that after Salaat, Zakaat is the most important act in Islam.

The following are some verses from the Holy Qur'an & some Ahadees showing the importance & benefits of Zakaat.

1. "The parable of those who spend their wealth in the way of Allah is that of a grain of corn. It grows seven ears & each ear has hundred grains. Allah increases manifold to whom He pleases." (al-Baqarah:261)
2. "By no means shall you attain righteousness unless you give (freely) of that which you love & Allah knows well whatever you give". (Aal-i-lmran: 92)
3. & nothing do you spend in the least (in His cause) but He replaces it, for He is the Best of those who grant Sustenance." (Sabaa: 39)
4. "& let not those who covetously withhold of the gifts, which Allah has given them of His Grace, think that it is good for them. No, it will be worse for them. Soon shall the things, which they covetously withheld, be tied to their necks like a twisted collar, on the Day of Judgment. To Allah belongs the heritage of the heavens & the earth & Allah knows all that you do." (Aal-i-lmran: 180)
5. "Of their good take alms, so that you might purify & sanctify them" (Tauba: 103)

Ahadees-e-Mubarakah:

1. Sayyiduna Umar Farooq (radi Allahu anhu) narrated that our beloved Prophet (sallallahu alaihi wasallam) said that the loss of wealth that one suffers on land or sea is due to not paying Zakaat. (Tibraani)
2. Abu Hurairah (radi Allahu anhu) narrated that our beloved Prophet (sallallahu alaihi wasallam) said that three persons would enter the Hell first. One of them, is the person who does not give Allah's rightful share (Zakaat & Sadaqah) from his wealth. (Ibn-e-Khazema & Habaan)
3. Sayyiduna Abu Hurairah (radi Allahu anhu) narrated that our beloved Prophet (sallal laahu alaihi wasallam) said that wealth does not decrease when you give Sadaqah & Allah increases the esteem of the one who forgives other people's mistakes & Allah raises the status of the one who practices humbleness for His sake. (Bukhari & Muslim)
4. Sayyiduna Abu Ayyub (radi Allahu anhu) narrated that a man asked the Prophet (sallallahu alaihi wasallam) about a deed that would take him to Heaven. Our beloved Prophet (sallallahu alaihi wasallam) replied: Pray to Allah. Do not commit Shirk (do not hold any partners with Him), keep performing Salaat, give Zakaat & be kind to everyone. (Riyaz-us-Saliheen)
5. Sayyiduna Abdullah bin Masu'd (radi Allahu anhu) has said that we were commanded to perform Salaat & give Zakaat & that Salah is not accepted of the person who does not give Zakaat despite eligibility. (Tibraani)
6. Bazzaz narrated from Sayyiduna Alqamah (radi Allahu anhu) reporting that our beloved Prophet (sallallahu alaihi wasallam) has said that the completion of one's Islam is dependent upon giving away Zakaat from one's wealth.

It is stated in the Hadees that by giving Zakaat the following benefits are derived:

1. Gain the pleasure of Allah,
2. Increase in wealth & protection from losses,
3. Allah's forgiveness & blessings,
4. Protection from the wrath of Allah & from a bad death,
5. A shelter on the Day of Judgment,
6. Security from seventy misfortunes.

Just as Salaat is the most important act of worship, which has to be performed bodily, so is Zakaat the main act of worship which has to be performed monetarily. Those who fulfill this duty have been promised abundant reward in this world & Hereafter. Whoever evades Zakaat has been sternly warned in the Qur'an & Hadees of the consequences.

Linguistically, Zakaat has two meanings: purification & growth. Technically, it means to purify one's possession of wealth by distributing a prescribed amount to the poor, the indigent, the slaves or captives, & the wayfarer.

There are many major benefits of giving Zakaat:

1. It reminds Muslims of the fact that whatever wealth they may possess is due to the blessings of Allah & as such it is to be spent according to His Commands.
2. Zakaat functions as a social security for all. Those who have enough money today pay for what they have. If they need money tomorrow they will get what is necessary to help them live decently.
3. The Zakaat payer pays his dues to Allah as an act of worship, a tof submission & an acknowledgment of gratitude. The receiver of Zakaat receives it as a grant from Allah out of His bounty, a favour for which he is thankful to Allah.
4. Economically, Zakaat is the best check against hoarding. Those who do not invest their wealth but prefer to save or hoard it would see their wealth dwindling year after year at the rate of the payable Zakaat. This helps increase production & stimulates supply because it is a redistribution of income that enhances the demand by putting more real purchasing power in the hands of poor.

Zakaat is obligatory upon a person if:

1. He or she is an adult, sane, free & Muslim.
2. He/she must possess wealth in excess of specified minimum (Nisaab) excluding his or her personal needs (clothing, household furniture, utensils, cars etc. are termed article of personal needs).
3. It should be possessed for a complete lunar year.
4. It should be of productive nature from which one can derive profit or benefit such as merchandise for business, gold, silver, livestock etc.

The amount of wealth, which makes one liable for Zakaat, is called Nisaab. The Nisaab as fixed by Rasulullah (sallallahu alaihi wasallam) is as follows:

1. Gold: 87.48 (grams) or 7.5 Tolas
2. Silver: 612.36 (grams) or 52.5 Tolas
3. Nisaab of cash, stock or bonds, other cash assets is the equivalent amount of Gold or Silver.
4. Nisaab is calculated by adding up the cash value of all the assets such as gold, silver, currency, etc. & if it is equal to or in excess of the minimum Nisaab as specified in the above table, the Zakaat is due at the rate of 2.5%.
5. The payment of Zakaat is compulsory on the excess wealth or effects which is equal to or exceeds the value of Nisaab & which is possessed for a full Islamic year. If such wealth decreases during the course of the year & increases again to the value of Nisaab before the end of the year, the Zakaat then must be calculated on the full amount that is possessed at the end of the year.

TYPES OF WEALTH ON WHICH ZAKAAT ARE IMPOSED:

1. Gold & silver, in any form
2. Cash, bank notes, stocks, bonds etc.
3. Merchandise for business, equal to the value of Nisaab
4. Livestock
5. On income derived from rental business

CALCULATION OF ZAKAAT

1. To calculate Zakaat on jewelry, etc. one must first determine the gold or silver content & then calculate the Zakaat according to current market price.
2. If the Gold possessed is less than 87.48 grams or if silver possessed is less then 612.36 grams, but the value of both combined is equal to or exceeds the Nisaab of either Gold or Silver, the Zakaat will be due.
3. In the event of an article not being of pure gold or pure silver, but containing a mixture of other metals & the gold or silver content is more than the other metal, it will be regarded as gold or silver & Zakaat will be due. But in the case where other metal/s is of greater quantity than either gold or silver, Zakaat will not be due on this article.
4. For stocks (shares held in a company), Zakaat is calculated based upon the current market value. As machinery, land, fixtures & fittings, furniture, buildings etc. are exempt from Zakaat, one is allowed to subtract these from the total asset. This could be obtained from annual reports. For example, if one has shares worth R1000 & machinery, land etc., are worth 5% of the total asset, then deduct R50 for these assets, afterwards deduct the liabilities of the company proportionately to the percentage of shares held. Zakaat must be calculated on the balance.

DISTRIBUTION OF ZAKAAT

1. Zakaat should be given as soon as possible after it becomes due.
2. All of the Zakaat can be given to one person or to several persons.
3. A poor man cannot be paid for his work from Zakaat nor can Zakaat be given in payment of services, except to the people appointed by the Islamic government to collect Zakaat.
4. Zakaat will only be valid if the recipient is made the owner of that amount. If, for example, a few needy persons are fed a meal from Zakaat money, then Zakaat will not be fulfilled as they were not made owners of the food.
5. Zakaat cannot be given for the construction of Masjid, Madrasah, Hospital, a well, a bridge or any other public amenity.
6. Zakaat can be paid in kind from the same merchandise on which it is due, or alternatively, it could be paid in cash.

TYPES OF WEALTH ON WHICH ZAKAAT ARE NOT IMPOSED:

1. On any metals other than gold or silver.
2. Fixtures & fittings of a shop, car, trucks or any delivery vehicle etc., which is used in running business.
3. Diamonds, pearls, other precious or semi-precious stones, which are for personal use.
4. There is no Zakaat on personal residence, household furniture, pots & pan, personal clothing, whether they are in use or not.
5. There is no Zakaat on a person whose liabilities exceeds or equals his assets. Some Mortgage in this country is not to be counted as personal liability for the Zakaat purpose.

RECIPIENTS OF ZAKAAT:

The recipients of Zakaat, according to Qur'an are as follows: "Alms are for the poor & the needy & those employed to administer (the funds); for those whose hearts have been (recently) reconciled (to truth); for those in bondage & in debt & for the wayfarer: (Thus is it) ordained by Allah & Allah is full of Knowledge & Wisdom." (Qur'an 9:60)

1. FUQARA: people who are poor & who possess more than their basic needs but do not possess wealth equal to Nisaab.
2. MASAKEEN: people who are destitute & extremely needy to the extent they are forced to beg for their daily food rations.
3. AL-AMILEEN: people appointed by an Islamic Government to collect Zakaat.
4. MU-ALLAFATU-QULUB: persons who have recently accepted Islam & are in need of basic necessities who would benefit from encouragement by Muslims which would help strengthen their faith.
5. AR-RIQAAB: slaves who are permitted to work for remuneration & have an agreement from their masters to purchase their freedom on payment of fixed amounts.
6. AL-GHAARIMEEN: persons who have a debt & do not possess any other wealth or goods with which they could repay that which they owe. It is conditional that this debt was not created for any un-Islamic purpose.
7. FI-SABILILLAH: persons who have to carry out an obligatory deed which has become obligatory on them & subsequently (due to loss of wealth) are unable to complete that obligation.
8. IBN-US-SABEEL: persons who are travellers & during the course of their journey do not possess basic necessities, though they are well to do at home. They could be given Zakaat in order to fulfill travel needs to return home.

PERSONS WHO CANNOT BE GIVEN ZAKAAT:

1. Zakaat cannot be given to the descendants of Rasulullah (sallallahu alaihi wasallam);
2. Zakaat cannot be given to parents & grandparents. In the same manner one's children & grandchildren cannot be given Zakaat.
3. A husband & wife cannot give Zakaat to each other.
4. Zakaat contributions cannot be given to such institutions or organizations who do not give the rightful recipients possession of Zakaat, but instead use Zakaat funds for constructions, investment or salaries.

THE PUNISHMENT FOR NOT GIVING ZAKAAT:

Allah says in the Qur'an: "& there are those who hoard gold & silver & 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 & their flanks & 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."