If
you are wondering to get an answer for what is zakat then this article will
help you a lot in details. In this guide, we will help you to know about zakat
means,
Why
is zakat important, who is eligible for zakat, how much is zakat, how do you calculate
zakat, zakat rule, condition of zakat, types of zakat, what is Nisab, what is
Sadaqa, what is fitr, zakat Al fitr, zakat al Mal, zakat al khums and many more
information will be gathered from here.
If
you will go through a complete article then you become confident enough for all
the topics of zakat and to help you out we have written this detailed article.
 |
| What is zakat |
What is zakat in Islam and what does zakat mean.
Zakat
is one of the most important five fundamental concepts or pillars of Islam. It is next after salat in importance.
Zakat or zakat al
Mal is a form of alms-giving as a religious obligation or tax.
Zakat is an act of worship that every Muslim should perform to help the
underprivileged Muslims.
Zakat is a religious duty
of all Muslims who meets the necessary criteria of wealth.
It is mandatory for every Muslim who is
financially insane, to pay zakat to the poor and needy provided they meet
certain conditions.
In the Quran,
zakat is discussed as charity in many verses. The concept of Zakat is
to purify one’s wealth and soul, a way to purify one’s income and wealth.
Muslims believe that those who give
zakat, can expect reward from Allah (s.w.t) afterlife.
Zakat means a must to do transfer of
ownership of some of the wealth or property of the giver, according to the estimated rate
of 2.5%, is to be given t0 the needy or poor Muslims in any part of the world.
It is mentioned in
the Quran.
“And be steadfast in prayer
and regular in charity: And whatever good ye send forth for your souls before
you, ye shall find it with Allah” (Qur’an 2:110)
“It is not righteousness that
ye turn your faces to the East and the West; but righteous is he who believeth
in Allah and the Last Day and the angels and the Scripture and the Prophets;
and giveth his wealth, for love of Him, to kinsfolk and to orphans and the
needy and the wayfarer and to those who ask, and to set slaves free; and
observeth proper worship and payeth the poor due. And those who keep their
treaty when they make one, and the patient in tribulation and adversity and
time of stress. Such are they who are sincere. Such are the God fearing”.
(2:177)
HOW MUCH IS ZAKAT.
HOW DO YOU CALCULATE ZAKAT.
 |
| How do you calculate zakat. |
According to Islam, zakat is meant to
be paid in order to purify the wealth, Zakat is based on the value of all of
one’s possessions.
Therefore, those Muslims who have
enough wealth, have to give a little amount i.e. 2.5% of your wealth to the
poor and needy each year on the market value of the Zakat-able possessions.
It is the duty of wealthy people to
serve the deprived community by helping them in every possible way. Zakat is
not a voluntary charity but an obligation. Muslims pay zakat every year in
order to purify their wealth and to seek blessings from Allah.
Calculation of Zakat to be paid by an
individual is based on the total savings of a Muslim during one lunar
(Islamic) year and the type of asset the individual possesses. It is
important to note that only the beginning and end of the year are taken into
account.
The Quran does not provide specific
guidelines on which types of wealth are taxable under the zakat, nor does it
specify percentages to be given.
But the customary practice is that, the
amount of zakat paid on capital assets (e.g. money) is 2.5% (1/40).
Zakat is additionally payable on agricultural goods, precious
metals, minerals and livestock at a rate varying between 2.5% and
20% (1/5), depending on the type of goods.
Some scholars consider the wealth of
children and insane individuals zakat-able, others don't. Some scholars
consider all agricultural products zakat-able, others restrict zakat to
specific kinds only.
Some consider debts zakat-able, others
don't. Similar differences exist for business assets and women's jewelry. Some
require certain minimum (Nisab) for zakatability, some don't, etc.
The same kind of differences also exist
about the disbursement of zakat. But the customary practice
is that the amount of zakat paid on capital assets (e.g. money) is 2.5%.
According to some scholar, Zakat is
also payable by children and the insane, as long as their wealth is above the Nisab.
 |
| ZAKAT ON GOLD |
All those Muslims whose savings meet or
exceed Nisab values are obligated to pay 2.5% of their total yearly savings to
the poor and needy.
What is Nisab: - Nisab
means a Muslim’s total saving and wealth above a minimum amount in a year. viz.
613.35 grams of silver, or 87.49 grams of gold or who owns one or more assets
liable, equal in value to 613.35 grams of silver or 87.49 grams of gold.
Muslims must possess a minimum “Zakat-able” amount of wealth, both at the beginning and at the end of their Zakat year.
Zakat is applicable to every Muslim who owns Nisab viz. 613.35 grams of silver, or 87.49 grams of gold or who owns one or more assets liable, equal in value to 613.35 grams of silver or 87.49 grams of gold.
One
should pay zakat on any surplus wealth under their
possession. This includes:
Gold,
silver and other jewelry/ornaments.
Money
you lend to others.
Shares
and stocks.
Pension
amount.
Cash
saved in bank, home or given for committee.
Property
which you buy for investment purpose.
WHO IS ELIGIBLE FOR ZAKAT? WHO CAN RECEIVE ZAKAT?
 |
| Who is eligible for zakat. |
Zakat is compulsory for every Muslim
adult who is mentally insane, and also possesses an amount of wealth which is
above the Nisab (it is the minimum amount a Muslim must have before being
obliged to Zakat).
The Sunna
also describes God's punishment for those who refuse or fail to pay zakat. On
the Day
of Judgment, those who did not give the zakat will be held
accountable and punished.
The hadith also warn of punishment for
those who take zakat when they are not eligible to receive it.
Who can Receive Zakat?
Zakat cannot be given to anyone in
need. There are eight kinds of people to whom zakat can be given
as mentioned in the Quran.
"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."
(Qur'an, Sura 9 (Al-Tawba) ayat
60).
 |
| Eligible for zakat. |
According
to the Holy Quran’s Surah Al-Tawba, there are eight
categories of people (Asnaf) who qualify to benefit from
zakat funds, a Muslim should give Zakat to the following types of people: And
these are the types below.
1. Al-Fuqara:- These are poor or needy who have
some money but don’t have sufficient wealth to meet for their
everyday needs.
2. Al-Masakin:- These people don’t have any type of
income or possessions. These are the people of extreme poverty who possess no
wealth at all, and run their life by asking others for food, clothing and
shelter.
3. Amil zakat-Zakat Collectors:- The government or
organizations who are authorized to collect zakat and to distribute among the
poor people. These people are being paid to work for in collecting zakat and to
distribute it to the needy.
4. Mu allaf-Those who converted to Islam: People
who have just converted to Islam and have no means to survive as he detached from
their family.
5. Ar-Riqaab-Slaves and Captives:- Those who are
kept as slaves and their masters have agreed to set them free on payment of a
fixed amount. In this case your zakat can be used to purchase their freedom.
6. Al Ghaarimeen-Debt-Ridden:- Those people who
have no means to pay off their debts, because of personal needs and do not have
enough money beyond their basic necessity to repay debt. Zakat is also be given
to those who may have landed themselves in debt due to some of social obligations
like supporting an orphan or renovating a school.
7. Fi Sabeelillah-In the cause of Allah:- These are
people who are away from home and are fighting in the path of Allah are
entitled to receive zakat. Those in Jihad and those who are seeking knowledge
or a stranded in Hajj. If require then these may be assisted with zakat in
need.
8. Ibnus Sabeel-The Wayfarer:- A traveler who is
left alone or stranded in foreign land and is in need of money to get back to
his home. These people can receive zakat if their purpose of traveling is
lawful.
Note: Zakat should not be
given to one's own parents, grandparents, children, grandchildren, spouses or
the descendants of the Prophet Muhammad.
Muslim scholars disagree whether zakat
recipients can include non-Muslims. Islamic scholarship, historically, has
taught that only Muslims can be recipients of zakat. In recent times, some
state that zakat may be paid to non-Muslims after the needs of Muslims have
been met, finding nothing in the Quran or Sunna to indicate that zakat should
be paid to Muslims only.
IMPORTANCE OF ZAKAT. WHY IS ZAKAT IMPORTANT?
Importance of zakat.
Besides the fact that zakat is an
obligatory act of worship in Islam and that Muslims get immense blessings by
paying zakat, there are other reasons of how zakat is an important factor of
the Muslim community.
Islam has guided us to make this world
a better place by supporting those who are less privileged. Therefore, Islam
puts great emphasis on charity and zakat. Here are some example of how zakat
helps in community building.
Helping the community at large:-The most important
benefit of zakat is that it helps to build society. If everyone keeps on saving
the money and spend on themselves, then the less privileged will always remain
poor.
Therefore, with the help of zakat,
people learn to support others in need. Zakat gives all the Muslims an
opportunity to create a huge impact in the lives of deserving people.
Money circulation:- With the help of
zakat, your money circulates in the whole economy. As Zakat is an obligatory
act, Muslims who are financially stable, pay zakat to the needy. This way,
money gets out of the ones who are wealthy enough and reaches those who are not
much privileged.
Act of Sacrificing:- In today’s world,
wealth has become an important aspect of life that everyone loves to have.
Therefore, when a person pays from his wealth in the form of zakat, it means he/she
is sacrificing wealth in the path of Allah.
Purification:-Zakat purifies the
possessions and the spirituality of one who gives it. It shows your obedience
to Allah (S.W.T).
Closer to Allah (S.W.T):- Giving Zakat brings
you closer to your God and increases your faith in Him.
Sins are Wiped away:- The Prophet Mohammad (P.B.U.H) said: “Giving charity wipes away sins just as water extinguishes fire.” The word charity (Sadaqa) here refers to the Zakat as well as the supererogatory form of charity.
Become Prosperous Muslims:- By giving Zakat a person shows that they obeying the rules set by Allah (S.W.T). His obedience brings him prosperity in both this world and the hereafter.
ZAKAT HISTORY:
Mecca
Zakat, an Islamic practice initiated by
the Islamic prophet Muhammad (P.B.U.H), was first collected on the first day of
Muharram.
The caliph Abu Bakr,
believed by Sunni Muslims to be Muhammad's successor, was the first to
institute a statutory zakat system.
Abu Bakr established
the principle that the zakat must be paid to the legitimate representative of
the Prophet's authority (i.e. himself).
Other Muslims
disagreed and refused to pay zakat to Abu Bakr, leading to accusations of
apostasy and, ultimately, the Ridda wars.
The second and third
caliphs, Umar bin Al-Khattab and Usman ibn Affan, continued Abu Bakr's
codification of the zakat.
Uthman also modified
the zakat collection protocol by decreeing that only "apparent"
wealth was taxable, which had the effect of limiting zakat to mostly being paid
on agricultural land and produce.
During the reign of
Ali ibn Abu Talib, the issue of zakat was tied to legitimacy of his government.
After Ali, his supporters refused to pay zakat to Muawiyah I, as they did not
recognize his legitimacy.
WHAT IS SADAQAH OR ZAKAT AL FITR?
FITRA.
In addition to zakat
obligations, Muslims were encouraged to make voluntary contributions (Sadaqa).
Zakat
al-Fitr or Sadaqat
al-Fitr is another smaller charitable obligation, mandatory for
all Muslims male or female, minor or adult as long as he/she has the means to
do so, that is traditionally paid at the end of the fasting in the Islamic holy
month of Ramadan.
The
collected amount is used to pay the zakat collectors and to the poor Muslims so
that they may be provided with a means to celebrate Eid ul fitr (the festival
of breaking the fast) following Ramadan, along with the rest of the Muslims.
Zakatal-Fitr
or Sadaqa is a fixed amount assessed per person, calculated
according to the variable rates of grains in that particular locality. This
rate and total calculation is announced by the religious committee every
year, While Zakat al Mal is based on personal income and property.
What is Khums?
Khums
is a 20% tax that must be paid on all items regarded as ghanima (booty
seized with war). There are differing legal traditions within Islam about what constitutes
ghanima, and thus how far-reaching khums should be.
In
some jurisdictions, khums included a 20% tax paid on business profit and on
minerals extracted in regions under the control of the state. Khums is
different and separate from other Islamic taxes such as zakat, fitra and jizya.
SHOULD ONE GIVE ZAKAT ONLY IN RAMADAN?
Zakat
There is a misconception that you can
only pay zakat in the month of Ramadan. This is not true.
A Muslim can pay zakat any time of the
year. However, it is suggested that if a person is paying zakat in the first
month of the year, he/she should pay zakat at the same time next year i.e.
after the year finishes.
Therefore, you should not wait for
Ramadan to pay your zakat. Once you become liable, you can pay your zakat as
the year ends.
CAN ANYONE PAY ZAKAT TO THEIR RELATIVES?
Yes, one can give zakat to their
relatives if they are poor and needy. However, you cannot give zakat to your
parents, children, spouse, siblings and others with whom you have blood
relation.
Finally, we are delighted to highlight and cover the maximum topics to
clear the doubts regarding Zakat, So that all of us are now able to do our
obligatory duty. If anyone wants to gather a deep knowledge, then we suggest to
go through Hadith and Quran.
This is dummy text. It is not meant to be read. Accordingly, it is difficult to figure out when to end it. But then, this is dummy text. It is not meant to be read. Period.
ConversionConversion EmoticonEmoticon