Understanding Zakat
Everything You Need to Know About the Obligatory Charity in Islam
What is Zakah?
1. Literally
The word Zakat is an Arabic word derived from the root word Az̈ Z̈akäh which has several
meanings including: Increase, Purity, Growth, praising oneself or Blessing.
2. Technically
Legally specified portion, upon a specific type of possession, given to a specified group of
recipients, within a specified time period with specified conditions.
How to calculate my Zakat
There are three simple steps to calculate your Zakat.
We have broken down the calculation process into three simple parts so that you can
calculate the Zakat you owe with ease:
- Part A: Your Zakatable assets e.g. cash, savings, gold, silver, business assets etc
- Part B: Your deductible liabilities e.g. outstanding bills, immediate debts/short-term debts
- Part C: Your final Zakat calculation – this will give you your net assets
Whether you have to pay Zakat or not will be determined once you have calculated your net
assets. You then need to see whether your net assets are equal to – or exceed – the Nisab
threshold (this is the minimum amount that you must own to be deemed wealthy enough to
pay Zakat).
We have devised a fantastic online calculator to help you calculate your Zakat in the most
efficient way but if you’re not a fan of doing things online (after all, not all of us are!) you can
download our Zakat guide here and calculate your Zakat the traditional way! With your pen
and paper!
- What are your Zakatable Assets?
- What are your deductible liabilities?
- Evidence for how to calculate your Zakat
Who has to pay Zakat ?
Zakat becomes obligatory only if the following conditions are fulfilled:
1. Islam
Zakat is not obligatory for non-Muslims.
2. Freedom
It is not obligatory for a slave.
3. Total ownership
This means that the wealth should be in the person’s ownership as well as in his custody.
4. The owned wealth should be equal to or more than the Zakat-cutoff (Nisaab)
If a person’s wealth is less than the Zakat-cutoff, then Zakat is not obligatory for him. The Zakat-
cutoff varies with the category of wealth whose Zakat is being paid.
5. The wealth should be free of debt
If a person owes a debt deducting it from his wealth makes it null or less than the Zakat-off, then
Zakat is not obligatory for him.
6. The wealth should be growing, no matter whether in reality or by law
Examples are gold and silver as they have been considered to be growing by law.
7. Elapse of a complete Lunar Year
Like from 11 Shawal to 11 Shawal for Monetary assets, trade commodities and livestock.
If it is difficult or not possible to use the lunar calendar then the solar calendar (i.e. 5 July to 5
July) can be used with some adjustments to the Zakat rates to account for the extra days in a
solar calendar.
The formula is as follows:
365 (days in a solar year) ÷ 354 (days in a lunar year) × 2.5%
(Zakah Rate) = 2.577% (New Zakat rate)
Who receives Zakat ?
There are eight categories of people who are eligible to receive Zakat.
Allah says:
إِنَّمَا ٱلصَّدَقَـٰتُ لِلْفُقَرَآءِ وَٱلْمَسَـٰكِينِ وَٱلْعَـٰمِلِينَ عَلَيْهَا وَٱلْمُؤَلَّفَةِ قُلُوبُهُمْ وَفِى ٱلرِّقَابِ وَٱلْغَـٰرِمِينَ وَفِى سَبِيلِ ٱللَّهِ وَٱبْنِ ٱلسَّبِيلِ ۖ فَرِيضَةًۭ مِّنَ ٱللَّهِ ۗ وَٱللَّهُ عَلِيمٌ حَكِيمٌۭ
“Alms are for the poor and the needy, and those employed to administer the (funds); For those whose hearts have been recently reconciled to the truth; and for those in bondage and in debt; in the course of Allah; and for the wayfarer:” (Thus is it) ordained by Allah, and Allah is full of knowledge and wisdom.” [Q: 9:60]
- The Poor (Al-Fuqarah)
These are the Muslims who cannot raise 50% of their basic needs.
- The needy (Al-Masaakin)
These are the Muslims who can raise 50% of their basic needs but have to be assisted with the rest of the requirements to meet their basic requirements due to lack of sufficient means of livelihood.
- The Zakat Workers (Al-Amilina)
They are the Muslims who have been entrusted with the responsibility of collecting, safeguarding and distributing Zakat.
- Those whose hearts are to be attracted (Al-Muallafatul-Qulubuhum)
They are divided into three subcategories namely:
- The disbelievers whom the prophet (s.a.w) used to attract through alms so that they might be more willing to accept Islam and thus their people would accept it as well.
- Those who embraced Islam yet their faith is weak, so they were given alms so that they might keep to Islam firmly.
- Those whom the prophet (s.a.w) would give alms to keep their evil and harm away from Islam and Muslims.
- Those in slavery (Fil-Riqab)
These are Muslim prisoners of war or hostages who need to be ransomed in order to secure their freedom.
- Those in debt (al-Ghaarimin)
These are Muslims through no fault of their own have incurred debt through halal transactions and are unable to settle them.
- For Allah’s Cause (Fi-Sabilil-llah)
It mostly applies to the Jihad (Fighting in the cause of Allah) though it can be used to finance any form of struggle or cause for the love of Allah (S.W.T) such as Da’awa (propagation of Islam), sponsoring students’ educational expenses, among others.
8. The wayfarers (Ibnu Sabil)
These are stranded travellers on lawful journey who are in difficulty and may need assistance to cater for their travel and basic needs as they are strangers and far away from their homes even though they might be wealthy in their homeland.
Note
- The first four categories of zakat recipients have full and absolute possession of zakat given to them and the last four categories of zakat recipients have temporary possession of zakat and must return whatever remains after their legally entitled reason is fully paid.
- For example, the stranded traveler will refund whatever is left from zakat given to him after he reaches his destination.
How will salary earners pay Zakat ?
When it comes to cash, Zakat is simply paid on the residual cash left over on one's Zakat anniversary. So it is irrelevant whether one earns money from salary, investments, benefits, gifts etc. One should simply fix a Zakat anniversary on a date in the Islamic calendar and then pay Zakat on whatever cash they have on the day, plus anything else that qualifies for Zakat.
What is the Nisab ?
It’s the minimum requirement or amount that a Muslim must have before obligation of zakat.
It varies with the category of wealth whose Zakat is being paid.
Nisaab (Minimum Threshold) for Zakat Obligation:
Wealth | Nisab | Conversion | Today’s value | Rate / % Due |
Gold | 20 Dinars or | 85 grams pure Gold (24- Carats) | Kshs. 541,909 | Half a dinar or 2.5% or 1/40 of the total value. |
Silver | 200 Dirhams or | 595grams pure/fine Silver | Kshs.50,551 | 5 dirhams or 2.5% or 1/40 of the total value. |
Currency | Gold or silver | Equivalent to that of gold or silver (whichever is less) | Kshs. 50,551 | 2.5% or 1/40 of the total value. |
Any treasure (crude oil, natural resources,….) | No nisaab | 20% | ||
Grains and Agriculture Produce | 5 Awsuq @ 60 sa’a | Approx. 612Kg for wheat) Considering one sa’a is 2.04kg (5 x 60 x 2.04 = 612Kg) | Depends on the local market price | 10% (1/10) if naturally irrigated 5% (1/20) if artificially irrigated |
Camels | 5 Camels. | One ewe (female sheep) or 1 goat | ||
Cows | 30 Cows. | One 1year old calf (1 tabi’i) | ||
Goats/Sheep | 40 Goats/Sheep | One goat (one year old) or one sheep (6months old) |
NOTE
- The Nisaab and rate for the animals will be discussed in details later in this book.
- The minimum threshold should be present for an entire lunar year.
- If at any time during the lunar year, one's property which initially reached the Nisaab becomes lower than the required threshold for the obligation of Zakat, no Zakat is due and a new lunar period starts from the time the Nisaab is once more reached.
Which month do we need to pay Zakat ?
This depends on when your Zakat becomes due. The date on which zakat should be calculated is what we call the Zakat anniversary date.
Every believer will have their own Zakat anniversary. To work out your date, it is exactly one lunar year after the date when your Zakatable wealth first reached or exceeded the value of the Nisab.
If you cannot remember the date your wealth first reached that level, then the date should be estimated.
If this is not possible, then a specific Islamic date should be selected arbitrarily and adhered to annually going forward.
Is Zakat paid in individual wealth or assets?
(Is everything I own a Zakat able asset) No
The items of Property on which Zakat is due
- Gold, Silver, and Legal tender Currency in circulation.
- Trade and merchandise (goods for trade)
- Livestock e.g. camels, sheep, cows, goats which are not kept for trade
- Farm products such as crops and fruits of the field like wheat, barley, dates, raisins, rice, maize, cassava, and sorghum.
- Buried treasures and precious minerals.
- Land for trade.
- Stocks and shares.
- Rented property. Only Rental income, not the value of the whole property.
Items on which Zakat is not payable
- Private houses from which the owner uses for residence.
- Animals used for transport e.g. donkey, oxen.
- Household items e.g. Furniture, personal clothes, weapons or tools for daily use.
- Books which are not for sale (personal).
- Women jewelry and gold ornaments which she uses for herself that have not reached nisab.
- Machinery, production equipment, chemicals, tools and even fleet of cars/trucks used by the trading company.
- Haraam (Ill-gotten) wealth
No Zakat is due or accepted from property acquired through haraam means as it doesn't meet the condition of “Full absolute ownership” mentioned earlier. The haraam property is either returned to its rightful owner (if known), or otherwise given out in charity.
- Public Property
Public property is property not owned by a particular person or a particular group of people but is for general benefit e.g. a government parastatal, non-governmental organization etc. Zakat isn't due on public property even if it is a profit-making property.
Am I responsible for paying Zakat of the gold jewellery of my wife?
Zakat is a personal obligation.
Every person is primarily required to pay their own Zakat. Hence, your wife will be primarily responsible to pay Zakat on her Zakatable assets such as gold and silver. However, you may pay Zakat on her behalf.
The Difference between Zakat and Zakat al Fitr
| ZAKAATUL-MAAL | ZAKAATUL-FITR |
1. | The wealth must have been in owner’s possession for one lunar year except in the case of farm produce, minerals and treasure finds of wealth from the pre-Islamic period. | It’s not necessary for the wealth to be in possession of the owner for one lunar year i.e. a child born before sunset of the last day of Ramadhan must be paid for. |
2. | The rate should be calculated according to the property to be given out. | It should be given on 3kg of the staple food |
3. | It should be given to recipients prescribed in the Quran. | It can be given to any needy or destitute Muslim |
4. | One may also give in the form of cash. | This must represent the exact equivalent of the market value of the kind and quality of the staple food which would have otherwise been offered. |
5. | The value paid depends on the amount of wealth possessed. | The value paid is determined by the number of dependents in the family. |
6. | It purifies wealth | It purifies saum |
7. | It’s paid at any time of the year when it is due. | It’s paid only in the month of Ramadhan before Idul-Fitr prayer |
8. | It is paid by mature person | It is paid by everybody even a child before Adulthood can pay. |
9. | Normal rate of Zakaatul-Maal on saved money or cash is two and half percent (2.5%). | Normal rate of Zakaatul-Fitr is 3 kilogram of staple food Payable per person. |
10. | There is nisab (the minimum amount on which Zakat is payable) | There is no nisab i.e. the rate is flat 3 kilogram of staple food |
11. | It is paid on a certain identified item | It is paid on the staple food in particular area |
What if I do not know the date my annual Zakat day?
It is necessary to calculate Zakat correctly to ensure one is fulfilling this command of Allah properly. It is strongly encouraged that one reviews his accounts and finances for the previous years and the amount of Zakat disbursed. This will clarify if there is a deficit in payment. One can make amends thereafter.
When is Zakat paid?
Your Zakat year should begin on the date your wealth equals or surpasses the Nisab; Zakat should then be calculated and paid after one lunar year has passed which is the Hawl. Annually, Zakat should always be paid on this date. If you cannot remember the date you first became owner of the Nisab, then the date should be estimated. If this is not possible, then a specific Islamic date should be selected arbitrarily and adhered to annually. This is referred to as your ‘Zakat due date’ or ‘Zakat anniversary’ on this website.Paying Zakat in Ramadan is not necessary, although giving charity in this month guarantees greater rewards.
If you use the NZF online calculator, you will be prompted for your Zakat anniversary or be asked to choose one if it’s your first time paying Zakat. If you register for the service it will remember your Zakat anniversary and send you a reminder the following year. It couldn’t be easier!
Am I able to pay my Zakat monthly?
Once Zakat becomes due then the scholars are all of the opinion that it must be paid without delaying it unless there is a valid reason to do so. If one is unable to pay the Zakat in one payment, then he/she may be able to pay in instalments as longer as the total amount due is paid.
Why is Zakat is due on paper money?
At the time of the Prophet Muhammad (peace be upon him), Zakat was due on gold dinars and silver dirhams. Now that we use paper money, Zakat is due on the cash that forms our wealth – not solely on the exchange of silver and gold.
What if I missed a number of years of Zakat?
A person who missed Zakat a number of years has to calculate the value of the net Zakatable assets on one’s Zakat day for every year missed. The amount to be disbursed in the previous years has become a debt in one’s liability on the day Zakat was binding. Thus, the outstanding amount due on each year’s Zakat day must be paid.
How do I calculate missed Zakat?
To calculate missed Zakat, work out the total net Zakatable assets in previous annual Zakat days in the same manner when calculating your net Zakatable assets for the current year.
You can work out your net Zakatable assets by subtracting all your deductible liabilities from your gross Zakatable assets. One should try to calculate as precise and accurate as possible. To get a precise figure, one can look at previous bank statements, wage slips, invoices, receivables and other documentation related to investments.
Does Zakat become a debt?
When a person misses a payment of Zakat, the outstanding balance becomes a debt. A Zakat debt is more severe than normal debts. A normal debt is the right of the creditor who may be wealthy and affluent. Whereas, a Zakat debt has two rights attached to it; not only is it the right of a needy person, in addition, it is the right of Allah that one pays his Zakat.
Zakat on gold, silver & jewellery
Do I need to pay Zakat on my gold and silver? Gold and silver in whichever form they are in (jewellery, coins, or ingots etc.) are all subject to Zakat.
If you own personal items made from a mixture of metals, then the gold/silver is liable to Zakat if the gold/silver content can be distinguished and ascertained.
Some scholars are of the opinion that mixed metals are only liable to Zakat if half or more of the metal is gold or silver.
How much gold/silver do you have to own before Zakat is payable?
This question can be answered in the context of your net assets. You then need to establish whether your net assets equal or exceed the Nisab threshold. If you exceed the Nisab threshold then Zakat is due on all your wealth at 2.5%.
Zakat is due on 2 types of precious metals – gold and silver. Gold and silver are used as the basis for calculating your Nisab regardless of currency. This is the threshold of wealth you need to own before Zakat is due.
The gold Nisab should be used on gold assets. If there is a mixture of gold and silver assets, the silver Nisab should be used.
How do I calculate the value of my gold/silver?
Your local gold jeweller can tell you the current value of your gold assets.
They can do this in two ways:
They can give you the current value they would buy your gold at if you were to sell it Or they can give you the weight of the gold and you can calculate the value using today’s live gold price in grams – this is known as the universal measurement. This is perhaps most suitable to ensure 100% accuracy.
Zakat on property & other fixed assets
The Property and other fixed assets category does not include the home you live in but includes property purchased with the intention to make profit from reselling. In addition, the value of leased property is not subject to Zakat. Only the rental income is subject to Zakat.
Is Zakat due on the house I live in?
There is no Zakat due on the house that a person owns and lives in or in the house that he or she owns but their dependents (wives / children etc.) live in. There may, however, be Zakat applicable on any other property or building that a person owns. Use of property The Zakat that is due and obligatory depends on the use of the property and building that a person owns:
Scenarios:
Living in the property – No Zakat due. Using the property for business and trade – No Zakat is due on the property itself however there is Zakat due on business goods and profits from the business Rental income: whatever is left over from your rental income on your Zakat date after any expenses, maintenance, mortgage and so on will join the rest of your cash balance and will be Zakatable at 2.5%. It is important to note that any rental income from properties owned should be added to one’s cash balance for Zakat purposes.
Recap for property
The house in which you live is not subject to Zakat If a property or other fixed asset has been purchased with the express intent to resell, then the entire value of the property / asset is subject to Zakat If there is any other intention, then it is not subject to Zakat For example, you purchase an additional property other than the residential house & the intention for purchasing it is just to invest cash in it. In this scenario, the second house is not to live in, so there is no zakat due on it because it is a long-term investment. However, if you make an intention to sell your property, it will not be subject to Zakat. Upon the sale, any remaining proceeds on your annual Zakat day will be liable for Zakat.
Fixed assets
Like property, Zakat is due based on the use of the fixed asset and your intention. For fixed assets such as land, Zakat is not due on the land if you have simply inherited or purchased it with no particular intention or as a store of wealth.
If it was bought for investment, then Zakat is due on the approximate sale price of the land every year, on the Zakat anniversary. This means that the land needs to be valued each year to see if it’s value has increased, depreciated or remains the same. It’s always important to check to ensure that you do not over – or underpay. You can delay the payment for each year for the time when the land is actually sold. In this case it will be due for each of the previous years based on the land value at the time.
Mortgages
Mortgage payments are not deducted from your Zakatable assets. Scholars give an allowance for up to one year's worth of the non-interest portion of the payments to be deducted but this allowance should only be taken if one feels that not doing so significantly impacts one ability to make the repayments in a timely fashion. If it is an Islamic home purchase plan, then these are not considered to be debt and therefore nothing is deductible.
Zakat on stocks and shares
If you are holding these shares as a long-term investment, then Zakat is due on your proportionate ownership of the Zakatable assets of the companies in which you have invested. Normally this is done by finding out which stocks you own, how many shares you own and then using the company balance sheets to work out roughly what the Zakatable assets are in each firm. If it is difficult for you to determine this, then simply take 25% of the current market value of your portfolio as a proxy for the Zakatable assets of the underlying companies and then pay 2.5% of this value. e.g. if your portfolio is worth Ksh 10,000, take 25% which is Ksh 2,500 and then 2.5% of this which would be Ksh 62.50.
The increase and decrease in portfolio value is irrelevant – only the current value matters.
Zakat on debts owed to you
Zakat is payable on strong debts, i.e. money that is owed to you that you are confident will be paid. This may include personal loans to friends and family. This does not include outstanding wages, dowry, inheritance or assets held in trust.
A debt that is owed to you is still classed as an asset depending on certain criteria being met. It is classed as a personal asset because you are likely to get it back.
Zakat on cash and liquid investments
Zakat on salaries and income. Zakat is binding on the amount of one’s savings in the form of salaries on one’s annual Zakat day. Regardless of how much salary one received in the year, only the remainder on the Zakat anniversary will be considered and be subject to Zakat salary spent throughout the year will not be subject to Zakat.
Zakat on savings
The easiest way to work this out is to review your level of savings on your Zakat anniversary and use that for your Zakat calculation.
What about other types of income like benefits?
Other types of income such as benefits (that make up part of the welfare system in the UK) are still classed as income. On your Zakat anniversary, any money that you have with you should be included in your cash balance for Zakat purposes, irrespective of whether it came from salary, benefits, rental income etc. You need to determine whether this income takes you over the Nisab threshold and if so you will need to pay Zakat on this amount. Though some may think that benefits do not equate to Zakatable income – this is most definitely not the case.
Is there Zakat due on interest income?
If interest has been earned on your liquid investments and assets, then it should ALL be given away to charity. Interest is unlawful in Islam and therefore giving this as charity would not bring the reward that usually accompanies this good deed as we need to understand that the interest we have got on our money is NOT actually ours.
What if I own a property with rental income?
If you own property other than your home for the purposes of long-term investment without intention to resell then Zakat is due on rental income only.
Zakat on business assets and liabilities
Business assets are subject to Zakat and these include cash, finished goods, work in progress, raw materials and strong debts, i.e. money owed to the business that is likely to be received. Business assets must be valued at their current market price. For finished goods, this should be their retail sale price. For unfinished goods, this should be whatever price you expect the unfinished good to fetch on your Zakat anniversary date.
Proof from the Qur’an and Sunnah that business assets are Zakatable:
O you who believe! Give from that which you have earned and from that which we have given you from the harvests of the land. [Al-Baqarah: 267]
Charity (obligatory) is due upon camel, and upon Sheep and upon raisins. (Al-Muḥallā, (5/234-235))
By Ijma (consensus of the scholars):
Some narrations from the time of ʿUmar (Allah’s blessings be on him) show that the companions had consensus on the obligation of Zakat on business. (See Al-Mughnī (3/35) Intentions
Note: Zakat is obligatory on:
Items that are bought and sold or prepared for sale.
With the intention of business and profit.
As a result: the prevalent intention behind buying a commodity or keeping a commodity in one’s possession is crucial in ascertaining its ‘Zakatableness’.
Example:
If you buy a car for personal use but also intend to sell it if you find a good price for it – there is no Zakat due.
HOWEVER
If you buy a car with the intention of reselling it but use it in the meanwhile – Zakat is due on it.
As you can see from the above examples, intentions are key in determining whether an item is Zakatable or not. It comes down to our own personal conscience to determine the purity of our intentions and make sure that we are being honest with ourselves when conducting our Zakat calculations.
Commodities and Assets
The resources and fixed assets that are used by a business to run, such as a building, factory, warehouse, office equipment, IT systems, transport vehicles, etc… which are not directly for sale – have no Zakat due upon them. Similarly, if an investment in the capital resources is made, such as renovations of the office – then this can be deducted from the wealth upon which Zakat is due.
The majority of the scholars are of the opinion that the value of the commodity to be taken into account for Zakat purposes is the selling price and not the buying price. The price to take into account would be the wholesale selling price if most items sell wholesale or retail pricing if most items retail.
Zakat that is levied upon the businesses should be in the form of money and currency and not from the type of wealth that the business deals in – unless the poor need that type of wealth, in which case it would be permissible for the business to give the Zakat in terms of the commodity that it does business in. This is the opinion of Ibn Taymiyyah (Allah have mercy upon him).
Still have more questions about Zakat? We’ve got you covered! Check out our extensive library of questions below to learn more about the principles and rules of Zakat, how to calculate and give Zakat, and much more.
What is the ruling of one who rejects Zakat obligation status knowingly?
He becomes a disbeliever
Therefore, the punishment of apostacy is applied on him i.e. he is killed.
What is the ruling of whoever denies Zakat obligation status out of ignorance?
He is educated and not considered to have disbelieved.
What is the ruling of who disagrees Zakat obligation status due to stinginess?
He has committed a major sin but he is not considered as a disbeliever.
Is wealth a means or a goal in Islam?
It’s a means
Through which a Muslim seeks to get Allah’s satisfaction by spending out of this wealth in His cause after getting it lawfully.
What is the ruling of One who has Zakat due then he dies?
Death doesn't free him from this obligation.
The Zakat due from him is paid out from his inheritance as a debt before the will (wasiya).
When exactly is zakat to be paid?
When it reaches the nisab and a whole Hijri year has passed over it.
Get in touch to know when your zakat is due through the communication at the back of this Booklet.
Is it permissible to pay zakat to your relatives?
It’s not permissible to give zakat to your parents and children but its permissible to give zakat to your sisters and brothers provided they legally deserve it i.e. they are poor, needy etc.
Who is a poor person?
Is one who does not have any means of livelihood and material possession to support his family and himself.
Who is a needy person?
Is one who has to be assisted with the rest of the requirements to meet his basic requirements due to lack of sufficient means of livelihood.
Is it permissible to give zakat to a strong young man who can earn his livelihood?
It’s not permissible to give zakat to him because the prophet (s.a.w) said:
“Sadaqa is not lawful for a rich person or for a stout strong person” (Narrated by Abu Dawud and at-Tirmidhy)
Is it permissible to give zakat to a young person?
It’s permissible to pay zakat to both young and old people provided they legally deserve it i.e. they are poor, needy etc.
In case of a young person, it’s given to the legal guardian (walii) or whoever is responsible for him.
Is it permissible to pay the “value” of the items of zakatul maal?
It’s permissible for zakat payer to pay the value of such zakat items in form of money because the purpose of zakat payment is to give the recipient what is sufficient to fulfil his needs.
What are the things for which zakat is not obligatory?
Residential houses, animals used for transport, household items, personal books, Machinery, production equipment, chemicals, tools and even fleet of cars/trucks used by the trading company etc.
Is it valid to count debt as part of the zakat which is to be paid?
There is no Zakat due on bad debts (unlikely to be paid debts) till they are recovered.
Debts which are likely to be paid must be accounted for in the annual Zakat calculation and paid for each and every year.
Is it obligatory that the giver of zakat tells the receiver that “this is zakat”?
He should not tell him but it’s enough for him to intend and may give him in form of a gift or present or a brotherly aid so that he may not break his heart and hurt his feelings.
Is it lawful for a husband paying zakat to his wife?
It’s not lawful that a husband gives to his wife zakat as its obligatory upon him to spend on her.
What is the ruling of zakat paid to a person who was later discovered to be rich?
The payment of zakat in this case is legally sufficient and effective on the payer and he does not have to pay it again, to another poor person.
Is it permissible to move or carry zakat from one country to another?
It is not permissible to move or carry the money or property assigned as zakat from one country to another.
How do you calculate zakat due on bank note?
First, the value of the bank note at hand should be estimated with the value equal to the nisaab of gold or silver (whichever is less). Secondly, a whole Hijri year should pass while in his possession and the rate is 2.5%
For example, 1 gramme of silver is Kshs.75 and its nisaab is 595 grammes = 595 x Kshs.75 = Kshs. 44,625
A person with Kshs.50,000 will pay Kshs.50,000 x 2.5% = Kshs.1,250
What is legally “hoarded” wealth?
Is wealth which zakat is due, yet this zakat is not paid.
What is the ruling of a person indebt but his wealth exceeds his debt?
He is eligible to pay zakat
If the wealth he possesses, exceeds his debt and this extra amount reaches the nisaab, he must pay zakat for this extra property.
Is a wealthy child or an insane person obligated to pay zakat?
They are obligated to pay zakat
Zakat is due for the property of a child or an insane person thus the legal guardian (walii) of the child or an insane person must pay this zakat.
Is it permissible for the heirs to pay sadaqa to benefit the dead person?
It’s permissible for the heirs of a dead person to give sadaqa on his/her behalf and the reward of that will reach him/her.
What is the ruling of who disagrees Zakat obligation status due to stinginess?
It’s permissible It’s valid to pay zakat before its time because it’s considered a kind of hastening to do something good.
How can a Muslim pay zakat for his business money?
The Formula for the Calculation of zakat for Traders
Zakat Due = (Total Cash + Market Price of business material + Debtors who are likely to pay – Creditors) × 2.5% e.g 50,000 + 50,000 + 50,000 – 50,000 x 2.5% = 2,500
What’s the ruling on the wealth got within the year after getting the nisab?
It’s not a stipulation that a year should pass for every property added to the nisab.
It’s enough to count the period of the year which is to pass before paying the zakat by
defining a beginning and end of it.
What’s the ruling on zakat for diamonds, pearls and peridot?
Intention is a key
There is no zakat for the afore mentioned jewels when used as adornment but there is zakat for them when used for business.
Is zakat due for horses and slaves?
No zakat is due for horses and slaves unless they are used for business material.
The horses are for racing and slaves are for service which are necessary for man’s use.
Is it valid to pay zakat due for camels from the male camels?
Yes, it’s valid
Only female camels or she camels are accepted to be given out for zakat (except when a one- year-old female camel is unavailable, then a two-year-old male camel serves). However, if all camels are male, then it is accepted to give out the male in zakat.
What is valid to be taken in zakat?
The zakat collector doesn't take the best quality of livestock or from the poor quality, but he takes from the medium quality so as to be fair and just to both the zakat giver and receivers.
What is the zakat due for honey, fruits and vegetables?
Zakat isn't due on honey, fruits and vegetables except if they are for trade purposes.
Is the zakat due for what is taken out of the sea?
No zakat is due on whatever is taken out of the sea like fish, pearls corals etc except if they are for trade purposes.
Is intention obligatory on paying zakat?
Intention is a must
It’s stipulated that whoever is to pay zakat must intend as it’s a form of worship.
Is it a must that zakat should be paid to all the recipients mentioned in the Quran?
It’s permissible for zakat payer to pay it either to only one of these legally defined recipients or to all of them.
Is it lawful to pay zakat to a rich man?
It’s not lawful to give zakat to a rich man who possess the nisaab and thus he himself is legally asked to pay zakat.
Is it lawful to pay zakat to a disbeliever?
Zakat is not given to the Unbelievers and atheists whose hearts are not to be attracted (Al-Muallafatul-Qulubuhum)
Why is it that zakat is unlawful for the house hold of the prophet Muhammad (PBUH)?
Zakat is not lawful for the house hold of the prophet Muhammad (PBUH) because it represents people’s impurities as it purifies their souls and property.
Is it permissible to give presents to the house hold of the prophet Muhammad (PBUH)?
Unlike zakat, it is permissible to give presents to the house hold of the prophet Muhammad (PBUH)?
Is it permissible to pay Zakat-ul - Fitri before the time it’s due?
It’s permissible to pay Zakat-ul - Fitri one or two days before Id-ul Fitr.
Is it valid to pay the “value” of the items of Zakat-ul - Fitri?
According to the majority of the scholars it’s not permissible to pay the value of the items of Zakat-ul – Fitri instead of the objects themselves as he has to pay exactly what the prophet (PBUH) specified.
What is the obligatory quantity due for Zakaat-ul-Fitr?
The obligatory quantity due for Zakaat-ul-Fitr is one Sa’a of the staple food of the land. Therefore, if one wishes to use an approximate weight then 3kg of staple food per person is a safe approximation of one Sa’a.
Is it valid to pay the “value” of the items of Zakat-ul - Fitri?
Yes, it’s valid
Most scholars now establish that it’s permissible to pay Zakat al-Fitr in cash.
This is to what will satisfy or improve a poor person based on the cost of a common staple food in the place where he lives in.
Can one delegate someone or an institution to purchase staple food and distribute it from his money on his behalf?
One can delegate someone or an institution to purchase staple food and distribute it from his money on his behalf.
What is the ruling of Whoever denies Zakat obligation status and he/she is ruled by a Muslim leader?
He will be compelled to pay his/her Zakat obligation and the Muslim leader doesn't take from him more than what he/she is liable to pay.