Zakat is the amount of money that every adult, mentally stable, free, and financially able Muslim, male and female, has to pay to support specific categories people. This category of people is defined in surah at-Taubah (9) verse 60: “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.” (Al Qur’an 9:60).
Take from their money a charity to cleanse them and purify them – Al Qur’an 9:103
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 verses 34-35: 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. Zakat is obligatory when a certain amount of money, called the nisab is reached or exceeded. Zakat is not obligatory if the amount owned is less than this nisab.
What is Nisab?
Nisab is the base measure of abundance expected to make an individual obligated to pay Zakat. The nisab (or least measure) of gold and brilliant money is 20 mithqal, around 85 grams of pure gold. One mithqal is roughly 4.25 grams. The nisab of endlessly silver money is 200 dirhams, about 595 grams of pure silver. The nisab of different sorts of cash and money is to be scaled to that of gold, 85 grams of pure gold. This implies that the nisab of money costs 85 grams of 999-type (unadulterated) gold on the day Zakat is paid. (Current Gold Costs)
The easiest way to work out Zakat
At any day of the year (e.g. 21st Ramadan), include the worth of your gold, silver, investment funds, cash, shares and so on – these are your complete resources. Less from this, any money you owe and any bills promptly due – are your liabilities. If the equilibrium is more than the nisab esteem, you need to pay Zakat 2.5% in the general sum.
Points to remember
- Zakat is only due on assets held for more than a lunar year.
- Zakat is not due on your main home.
- Mortgage loans should not be deducted from your assets.
- Businesses also need to pay Zakat on their profits and stock.
Examples
If the nisab is $2,840 (PKR 497,451) this Ramadan and you have savings of $1,313 (PKR 229,983) and gold worth $1,970 (PKR 345,063) (Total $3,284)(PKR 575,222) , then you have to pay 2.5% of the whole amount as Zakat – which = $82 (PKR 1,4363).
When is Zakat Due?
Zakat is obligatory after a time span of one lunar year passes with the money in the control of its owner. Then the owner needs to pay 2.5% (or 1/40) of the money as Zakat. (A lunar year is approximately 355 days).
Deduction of Debts:
The owner should deduct any amount of money they borrowed from others, check if the rest reaches the necessary nisab, and then pay Zakat for it. If the owner had enough money to satisfy the nisab at the beginning of the year, then the cash increased (in profits, salaries, inheritance, grants…etc.). The owner needs to add the increase to the nisab amount owned at the beginning of the year, then pay Zakat 2.5% of the total at the end of the lunar year. (there are minor differences in the fiqh schools here) Each Muslim calculates their own Zakat individually. For most purposes, this involves the payment each year of two and a half per cent of one’s capital. A pious person may also give as much as they please as sadaqah and does so, preferably in secret. Although this word can be translated as a voluntary charity, it has a broader meaning. The Prophet said, ‘even meeting your brother with a cheerful face is charity.’
