Zakaat
Value of Nisaab (2012):-
GOLD (87.5g) £3,135.52 (GBP)
SILVER (625g) £353.16 (GBP)
literally, zakat has two meanings
1- The first is purity, such as the saying of Allah [Take from their wealth so tat you might purity and sanctify them]. (Quran (9:103))
2-The second meaning is extra and growth, such as when a person says (the plants have grown) intending the meaning, that they have increased.
Zakat according to the law of Islam is (the ownership of a certain amount of wealth that has been prescribed by the law for a poor Muslim who is (in the UK) has not got more than £500 in their bank account.
Eight Types of Zakat
1.Fuqara / Someone who may have some money, but not enough to meet their needs. They live in difficult circumstances but do not ask for help.
This could be: An orphan from a poor family with a mother who is weak and cannot work.
2.Miskin / Somebody who does not have any money for food, clothing or shelter.
This could be: A child that wants to go to school but is not able to pay his school fees.
3.Aamileen / The officials engaged in the collection and distribution of Zakat paid from the Zakat fund.
This could be: A person working in Pakistan who may be collecting Zakat from the local community.
4.Muallafat-ul-Qulub / Someone new to Islam.
This could be: A revert or a non-Muslim who is new to Islam (you may give money to help them convert to Islam i.e. through Dawah related activities (Islamic education), or give money to prevent trouble from non-Muslim coming to Muslims.
5.Fir-riqab / To make one person free from another person.
This could be: A person or child in slave labour.
6.Al-Gharimeen / Someone who is in debt.
This could be: A person who has accumulated debt.
7.Fi Sabeelillah / Someone/body working in the cause of Allah.
This could be: Propagation of Islam, dawah-related activities (information about Islam), educational events, seminars and training on how to use Islam to address issues in society.
8.Ibn-us-Sabil / A stranded traveller, if he/she is in need of money while travelling, is entitled to Zakat.
This could be: Someone who has travelled abroad and lost their money and doesn’t have immediate access to funds.
On what types of wealth should I pay my Zakat?
Jewellery
Zakat is due on all jewellery which consists of equal to or more than 50% gold and/or silver. The value of gold and silver change on a daily basis, so it is advisable to find out the value of gold and/or silver at the time of paying Zakat.
Different scholars have varying opinions on this matter. Due to the fact that gold is more expensive than silver, many scholars advise that it is better to calculate Zakat based on the value of silver because this will be more beneficial to those dependent on your support.
In the Asian subcontinent gold is sometimes measured in units of ‘Tola’ as opposed to grams. 1 tola equals 11.66 grams, which means 87.48 grams of gold is equivalent to 7.5 Tola.
Tola is also known as ‘Bhori’ or ‘Vori’.
Business
Zakat is payable on the value of all goods which are intended to be sold; the calculated value should be that of the selling price. It is important to remember that Zakat is due regardless of whether the business is making a profit or not.
E.g.: Imran runs a business and he is due to his pay Zakat, he should use the following formula to calculate how much Zakat needs to paid:
2.5 × (value of trade goods + cash + business loans) – debts payable to others).
Property
Zakat is only due on property that is owned for investment, not the property in which one resides.
Buy to Rent – If one owns a home for rental purposes, then Zakat is payable upon the rent with the deduction of any outgoings in connection with the property.
Buy to Sell – If one owns a second home with the intention of re-selling the property, then Zakat is payable on the value of the property.
Shares, Cash Savings and Pensions
One must pay Zakat on the value of the shares which one owns for the entire Zakat year. Due to the fact that the share market is in constant fluctuation, it is advisable to check the value of shares at the end of the Zakat year.
Zakat is payable on any cash money which is kept at home or deposited in the bank.
A person needs to pay Zakat on their pension which they receive after retirement, provided that they are considered Sahib-un-Nisab (owner of wealth). People, who are currently earning and have a percentage of their salary paid directly into a pension fund by their employer, do not need to pay Zakat for this money yet, as they do not have access to it until after retirement.
Loans given to othersIf one is sure that the person who has borrowed money from them will pay the money back, and then they must pay Zakat on this loaned money. However, if one thinks that the borrower is not able to return the loan, then they do not need to pay Zakat on that money. If in this instance, the borrower eventually returns the money, then one will become eligible to pay Zakat on that money.
Who is eligible to receive it?
Allah has stated in the Holy Quran (chapter 9, verse 60) the people who have the right to receive Zakat:
· People who are in complete poverty and have nothing.
· People who have some wealth, but not enough to meet their basic needs.
· The people who collect Zakat to distribute to the poor and needy.
· People who are sympathetic towards Islam or wish to enter to Islam, and are needy.
· Zakat may be used to free a person from slavery.
· Zakat can be given to those who are in debt and unable to pay off their debt.
· The people who work in God’s way and strive to give Dawah.
· Travellers and/or wayfarers who are needy.
GOLD (87.5g) £3,135.52 (GBP)
SILVER (625g) £353.16 (GBP)
literally, zakat has two meanings
1- The first is purity, such as the saying of Allah [Take from their wealth so tat you might purity and sanctify them]. (Quran (9:103))
2-The second meaning is extra and growth, such as when a person says (the plants have grown) intending the meaning, that they have increased.
Zakat according to the law of Islam is (the ownership of a certain amount of wealth that has been prescribed by the law for a poor Muslim who is (in the UK) has not got more than £500 in their bank account.
Eight Types of Zakat
1.Fuqara / Someone who may have some money, but not enough to meet their needs. They live in difficult circumstances but do not ask for help.
This could be: An orphan from a poor family with a mother who is weak and cannot work.
2.Miskin / Somebody who does not have any money for food, clothing or shelter.
This could be: A child that wants to go to school but is not able to pay his school fees.
3.Aamileen / The officials engaged in the collection and distribution of Zakat paid from the Zakat fund.
This could be: A person working in Pakistan who may be collecting Zakat from the local community.
4.Muallafat-ul-Qulub / Someone new to Islam.
This could be: A revert or a non-Muslim who is new to Islam (you may give money to help them convert to Islam i.e. through Dawah related activities (Islamic education), or give money to prevent trouble from non-Muslim coming to Muslims.
5.Fir-riqab / To make one person free from another person.
This could be: A person or child in slave labour.
6.Al-Gharimeen / Someone who is in debt.
This could be: A person who has accumulated debt.
7.Fi Sabeelillah / Someone/body working in the cause of Allah.
This could be: Propagation of Islam, dawah-related activities (information about Islam), educational events, seminars and training on how to use Islam to address issues in society.
8.Ibn-us-Sabil / A stranded traveller, if he/she is in need of money while travelling, is entitled to Zakat.
This could be: Someone who has travelled abroad and lost their money and doesn’t have immediate access to funds.
On what types of wealth should I pay my Zakat?
Jewellery
Zakat is due on all jewellery which consists of equal to or more than 50% gold and/or silver. The value of gold and silver change on a daily basis, so it is advisable to find out the value of gold and/or silver at the time of paying Zakat.
Different scholars have varying opinions on this matter. Due to the fact that gold is more expensive than silver, many scholars advise that it is better to calculate Zakat based on the value of silver because this will be more beneficial to those dependent on your support.
In the Asian subcontinent gold is sometimes measured in units of ‘Tola’ as opposed to grams. 1 tola equals 11.66 grams, which means 87.48 grams of gold is equivalent to 7.5 Tola.
Tola is also known as ‘Bhori’ or ‘Vori’.
Business
Zakat is payable on the value of all goods which are intended to be sold; the calculated value should be that of the selling price. It is important to remember that Zakat is due regardless of whether the business is making a profit or not.
E.g.: Imran runs a business and he is due to his pay Zakat, he should use the following formula to calculate how much Zakat needs to paid:
2.5 × (value of trade goods + cash + business loans) – debts payable to others).
Property
Zakat is only due on property that is owned for investment, not the property in which one resides.
Buy to Rent – If one owns a home for rental purposes, then Zakat is payable upon the rent with the deduction of any outgoings in connection with the property.
Buy to Sell – If one owns a second home with the intention of re-selling the property, then Zakat is payable on the value of the property.
Shares, Cash Savings and Pensions
One must pay Zakat on the value of the shares which one owns for the entire Zakat year. Due to the fact that the share market is in constant fluctuation, it is advisable to check the value of shares at the end of the Zakat year.
Zakat is payable on any cash money which is kept at home or deposited in the bank.
A person needs to pay Zakat on their pension which they receive after retirement, provided that they are considered Sahib-un-Nisab (owner of wealth). People, who are currently earning and have a percentage of their salary paid directly into a pension fund by their employer, do not need to pay Zakat for this money yet, as they do not have access to it until after retirement.
Loans given to othersIf one is sure that the person who has borrowed money from them will pay the money back, and then they must pay Zakat on this loaned money. However, if one thinks that the borrower is not able to return the loan, then they do not need to pay Zakat on that money. If in this instance, the borrower eventually returns the money, then one will become eligible to pay Zakat on that money.
Who is eligible to receive it?
Allah has stated in the Holy Quran (chapter 9, verse 60) the people who have the right to receive Zakat:
· People who are in complete poverty and have nothing.
· People who have some wealth, but not enough to meet their basic needs.
· The people who collect Zakat to distribute to the poor and needy.
· People who are sympathetic towards Islam or wish to enter to Islam, and are needy.
· Zakat may be used to free a person from slavery.
· Zakat can be given to those who are in debt and unable to pay off their debt.
· The people who work in God’s way and strive to give Dawah.
· Travellers and/or wayfarers who are needy.
