Zakat: An Overview
Zakat is one of the five pillars of Islam. It means ‘to increase.’ Additionally, it also means ‘to purify.’ Therefore, paying this donation does not decrease the wealth of Muslims. It helps to increase and purify it. Read on to learn about the details of the third pillar of Islam (the importance of zakat )and why it is essential to implement it for a balanced society.
What is Zakat?
The zakat is an obligatory annual payment. It is mandatory for adult Muslims whose wealth exceeds the Nisab value for one Islamic (lunar) year. This donation pleases Allah (SWT). Zakat is used to support those most in need. It is a way to be at peace and maintain societal harmony and balance.
How Important is Zakat in Islam? / importance of zakat
The importance of zakat in Islam can be gauged by the fact that it is mentioned more than 80 times in the Quran.
It helps to maintain social order and remove beggary. Further, a balanced distribution of wealth among the rich and poor removes social evils like slavery, exploitation, and crime. The basic concept of annual donation is to promote brotherhood and Muslim unity worldwide in the name of Allah, the Almighty.
The Prophet (ﷺ) said: “Giving charity wipes away sins just as water extinguishes fire.”
Zakat purifies your wealth and soul in the eyes of Allah. It’s a way to learn discipline, show your obedience to Allah (swt), and increase your love for your brothers and sisters worldwide.
“The Believers, men and women, are protectors one of another: they enjoin what is just and forbid what is evil: they observe regular prayers, pay their Zakat and obey Allah and His Messenger. On them will Allah pour His Mercy: for Allah is Exalted in Power, Wise.” (9:71)
What Are the Types of Zakat?
There are two types of Zakat in Islam:
1. Zakat al-Mal: Zakat al-Mal, is the annual donation made on the wealth of an individual. It applies to money in cash, gold, silver, and property, which a Muslim has had for over a year.
2. Zakat al-Fitr: Another significant donation that is obligatory for Muslims is Zakat al-Fitr. This donation is made before Eid so that the needy can also celebrate Eid with their loved ones.
The Prophet Muhammed (PBUH) said:
“If one gives in charity what equals (the size of) one date-fruit from the honestly-earned money and Allah accepts only the honestly earned money –Allah takes it in His right (hand) and then enlarges its reward for that person (who has given it), as anyone of you brings up his baby horse, so much so that it becomes as big as a mountain.” Sahih Bukhari, Vol 2
What Are the Rules for Giving Zakat?
There are three main conditions set by the Prophet (PBUH) for giving Zakat:
NISAB (threshold at which zakat becomes due).
Nisab is the minimum amount of an individual’s wealth at which they are eligible to pay Zakat. This varies with the different types of wealth, for example, cash, property, or livestock. Additionally, if the wealth of an individual drops below the nisab at any time during the zakat year, the calculation of zakat will restart from that time.
PAYMENT RATE.
Each type of wealth has a different Zakat percentage. A 2.5% rate is assessed on all personal and business wealth. Agricultural produce has a 5% or 10% Zakat rate, depending on natural watering or irrigation of crops. Livestock is gauged according to different animals.
YEARLY PAYMENT (hawl).
Each type of eligible wealth has a due date of payment. Surplus personal and business wealth and livestock come due exactly one lunar Islamic year (hawl) after its initial nisab is reached, while on agricultural produce it is applicable at harvest time.
Who Can I Give Zakat To? Who is Eligible to Receive Zakat?
According to the Quran, Allah has divided the needy into 8 categories of people eligible to receive Zakat:
- Fakir – poor and needy
- Miskin – hungry and have nothing to eat
- Amil – zakat collector who distributes it on behalf of others
- Riqab – enslaved people or captives
- Gharmin – people in debt
- Fisabilillah – individuals who work towards the cause of Allah
- Ibnus Sabil – stranded travelers
- Muallaf – new members or converts
Allah says in the Quran:
Then steadfastly continue to establish the Prayer, and give the Zakât-Charity (Sûrat Al-Mujâdilah 58:13).
How to Calculate Zakat al-Mal
Now that you know the importance of Zakat, here’s how to calculate it.
When calculating your total wealth and assets, you must consider the following:
- The value of gold and silver items owned
- Money in your bank accounts or cash at home
- Loans that you have given out
- Pensions, stocks, shares, and investments
- Property owned as an investment (excluding the property you live in)
- Farm and agricultural produce
To calculate it, first, Muslims must calculate their total income by adding all the above sources of income. Next, calculate your needs and living expenses for the year and subtract them from the total income resulting in the total Zakatable amount.
If the amount is above the threshold or nisab, the Zakatable wealth is then multiplied by the Zakat percentage to find the yearly donation of the individual. Furthermore, you will be exempt from zakat if the amount is below the nisab.
How to Calculate Zakat on Gold?
The nisab value for gold is: equivalent to 87.48 grams (7.5 tolas) of gold.
The nisab value for silver is 612.36 grams (52.5 tolas) of silver.
What does this mean? If you own gold or silver equivalent to or more than the nisab value given above, only then zakat on these two items applies to you.
If the gold or silver you own is less than the nisab value, you are exempt from paying zakat.
The zakat percentage for gold and silver is 2.5%. Therefore, to calculate your zakat, multiply the amount of gold you own by 2.5%. The answer will be the amount of zakat you must pay.
Remember that zakat is applicable if you have owned gold or silver for more than one year.
Conclusion:
Zakat is an obligation on Muslims to help the poor fight against greed and riches. It is a way to maintain balance and order in society by reducing sinful acts and replacing them with goodness.
By paying this donation, not only are you helping your needy brothers and sisters you are also getting closer to Allah and building a home for yourself in Jannah! May Allah grant all Muslims the ability to pay zakat! Ameen!
Prophet Muhammed (PBUH) said:
“Giving Zakat is more beloved to Allah than giving in charity during the entire year” (Sahih Bukhari)
FAQs
Q: Can I give zakat to family members?
A: Yes, you can donate to family members if the member is eligible.
Q: How does Zakat work?
A: It is different from general charity. For the donation to work, the sole intention or niyat should be to pay zakat alone.
Q: Zakat is given in which month?
A: People can donate in any month of the year but should maintain the date to give the next donation on the same date in the following year.
Q: Can I give zakat to masjid?
A: Most scholars do not promote the idea of giving obligatory donations to mosques. However, some scholars suggest that individuals can donate it to mosques.
