Zakat - What You Need To Know
This segment gives a quick summary of problems and common enquiries connected to Zakat Due to the complicated nature of Zakat and the relative differences of viewpoint it is encouraged that you check with your local scholar for specific judgments and queries you may have about working your zakat out.
Common Frequently Asked Questions
What is Zakat?
Zakat is the 3rd pillar of Islam. Zakat is an obligatory act of worship that obliges a Muslim who owns wealth equivalent to or above the Nisab (pre-defined limit) to contribute approximately 2.5% of their wealth to qualified receivers. Zakat is intended to cleanse our wealth, not just physically, as well as spiritually. It cleans our heart against selfishness as well as safeguarding that society's less fortunate against hunger and poverty.
Who needs to pay it?
Every Muslim who has reached puberty, is of sound mind, and has above the minimum necessary amount of wealth (Nisab) is required to execute Zakat.
When should one pay Zakat?
Once a person reaches the Nisab and a lunar year has gone by, then Zakat is due instantly.
How much is the Nisab limit?
The Nisab threshold which requires the payment of Zakat will be based upon the present rate of 612 grams of silver. This can be calculated by going to your local jewellers and taking the most up to date valuation. If your Zakatable holdings go beyond this amount you are qualified to pay Zakat if the quantity stays above this by the end of one lunar year.
What takes place if the Nisab changes during the year?
Sometimes one's Zakatable wealth may drop below the Nisab through the year. In such cases of doubt, it is more suitable for one to take the value of one's Zakatable possessions at the start and end of the lunar year. If both values were above the Nisab then Zakat would be due.
Should we pay Zakat based on the price of silver or gold?
Lots of scholars prefer that a person should pay Zakat based upon silver (the lower value).
This is due to a larger number of individuals completing Zakat and thus being more advantageous to the less fortunate and deprived. However, if your only possession is gold, then the gold Nisab figure needs to be utilized.
What sort of assets are not Zakatable?
Below is a list of assets which one does not need to pay Zakat for:
The residential or commercial property one is residing in e.g., personal house.
Vehicle owned for individual usage.
A debt one is owed (where not certain of payment )
Jewellery not including silver or gold (e.g. diamonds, precious stones and so on).
Furnishings and family products for use (not for trade).
Where should Zakat be dispersed?
The more effective option is to deliver Zakat locally. Instead, one may offer Zakat to anyone who falls in one of the categories specified in the Qur' an. The poor, the needy, those in debt, those in the cause of Allah, recent reverts to Islam, those distributing Zakat, wayfarers, and those in captivity (The Noble Qur’an, 9:60). So, in theory you could give zakat to any part of the world if you feel there is a specific advantage and your support would be more helpful (e.g. receivers in severe hardship, inadequate regional donations, increased requirement due to natural disasters etc.).
What does one do about Missed out on Zakat payments?
If one has missed out on Zakat payments in your lifetime, then you must make a calculated estimation of the Zakat overlooked for each year and distribute it accordingly. These sums are still mandatory on them even if numerous years have gone by and whether or not he knew they were required.
Narrated by Abu Huraira (r.a.) The Prophet (pbuh) said, “Every day two angels come down from Heaven and one of them says, ‘O Allah! Compensate every person who spends in Your Cause,’ and the other (angel) says, ‘O Allah! Destroy every miser.’ “
(Sahih Bukhari, Chapter 24,522)
Is Zakat due on worn jewellery or not?
There is a variation of views on whether Zakat is due on gold/silver which is for personal usage. Numerous scholars say that Zakat is not due on these items or the property that is a personal item and therefore would fall under items that are not Zakatable.
For more information, we advise you to consult your local scholar.
How do I measure how much gold and silver I have?
It is recommended that you go to a local jewellery maker and ask to value the gold and silver of your jewellery.
Are any outstanding debts which are owed to me Zakatable?
The scholars distinguish in between a financial obligation in which one is positive of repayment and one which is not. If the money lender is convinced the borrower will pay when he is asked due to having the financial capability, then the lender needs to include this in Zakat payment. If, however, the borrower is struggling and one is not convinced he can pay when asked for to, then this quantity does not have to be determined as part of Zakat.
Can I pay my Zakat monthly?
If it is much easier, you can expand your Zakat payments over the entire year. Calculate just how much Zakat is due on you that year and divide it into twelve. At the end of the year, check your approximated calculation - if you ignored the amount of Zakat you required to pay, ensure you pay it off before the new year starts.
What are the Zakatable assets?
Zakat is not simply paid on the savings in your savings account. You require to pay Zakat on other types of wealth, such as:
Gold and silver
Money held at house or in savings account
Stocks and shares owned either straight or through financial investment funds
Money provided to others (where certain of repayment )
Business stock in trade and products
Livestock animals such as sheep, goats & cows
Properties owned for financial investment purposes.
It is significant to emphasize Zakat is a crossing that unites the Muslims to the magnificent beliefs of Islam. Zakat acts as the protection that safeguard Muslims from the evil of the pleasures and glories of ‘Dunya’ (world) and the secret to attain ultimate success in ‘Akhirah’ (hereafter).
The deed needs to be done completely with genuine intent of pleasing The Almighty Allah SWT.
If you still have and queries about paying your Zakat, or our Zakat-qualified projects, please give us a call on 0300 123 7774