Why should I pay Zakat?

Allah (The Glorified and the Exalted- Subhaanahu wa Ta'ala) commands in the Quran, "Take alms out of their property, you would cleanse them and purify them thereby, and pray for them; surely your prayer is a relief to them; and Allah is Hearing, Knowing." [Al-Quran 9:103]

Narrated Ibn 'Umar: Allah's Apostle said: Islam is based on (the following) five (principles): To testify that none has the right to be worshipped but Allah and Muhammad is Allah's Apostle; to offer the (compulsory congregational) prayers dutifully and perfectly; to pay Zakat (i.e. alms); to perform Hajj. (i.e. Pilgrimage to Mecca), and to observe fast during the month of Ramadan. (Al-Bukhari, Vol.1, Book 2, No.7).

collected from:http://www.hidaya.org/

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What is the meaning of Zakat?

Zakat literally means "to be clear, to grow, to increase." It comes from the root letters za, kaf, ya, which has several meanings: to be clean [Al-Quran Chapter 24: Verse 21, Chapter 23: Verse 4], to pay the obligatory charity [Al-Quran 2:43], to be pure, innocent [Al-Quran 19:19, 18:74], to be better in purity [Al-Quran 18:81, 19:13], and to praise oneself, to justify [Al-Quran 53:32]. It has been used in the Quran to mean all of these things. It can also be considered a form of sadaqah (charity), given to the poor.

Zakat is:

Levied on specific assets only, identified by Shariah (Islamic Law) as assets having the potential for growth.

Levied at the rate of 2.5% each year (calculated according to the lunar calendar*) on the market value of the Zakat-able assets after deducting therefrom specified liabilities.

The compulsory transfer of ownership of a portion of the property of the giver, calculated at the rate of 2.5% as aforesaid, to a poor and needy Muslim who qualifies to receive Zakat according to the Shariah.

An Ibada'h (worship) and not a tax, Obligatory on every Muslim who owns Nisab viz. 613.35 grams of silver, or 87.49 grams of gold or who owns one or more assets liable to Zakat as set out below, equal in value to 613.35 grams of silver or 87.49 grams of gold. . (See Sections 12.1 and 12.2 for more on Nisab).

* Zakat is calculated according to the lunar year. Those who pay Zakat according to the solar year should accordingly, in order to take into account the difference in days, add 3% to the amount of Zakat payable.

With regard to calculations (and specific information throughout this flyer), we have followed the opinion of the Hanafi school of thought. Information on other schools may be found by researching Islamic jurisprudence (fiqh) texts, books, or consulting local scholars in this regard.

collected from:http://www.hidaya.org

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Details of Zakat

What is Zakat (Obligatory Charity)?

Zakat is an obligatory act ordained by Allah (The Glorified and Exalted) to be performed by every adult and able bodied Muslim. It is an important pillar among the five pillars of Islam. Zakat is a part of the wealth and property that Muslims must pay annually, to help the poor of their community. One of the main purposes of Zakat is to keep those who are wealthy clean, monetarily, from sin. It is a form of Sadaqah (charity) which is obligatory on Muslims.

collected from:http://www.hidaya.org/

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What is Zakat? | Benefits of giving Zakat | calculate Zakat

Zakat is one of the five pillars of Islam. It has been mentioned, along with daily Prayers (Salaat / Namaz), over seventy times in the Quran. Allah's word commanding ".....and establish regular Salaat and give regular Zakat....." are referred to in many parts of the Quran. From this we can conclude that after Salaat, Zakat is the most important act in Islam.

Just as Salaat is the most important act of worship which has to be performed bodily, so is Zakat the main act of worship which has to be performed monetarily. Those who fulfill this duty have been promised abundant reward in this world and hereafter. Whoever evades Zakat has been sternly warned in the Qur'an and Hadith of the consequences.

Linguistically, Zakat has two meanings: purification and growth. Technically, it means to purify one's possession of wealth by distributing a prescribed amount to the poor, the indigent, the slaves or captives, and the wayfarer.

There are many major benefits of giving Zakat:

It reminds Muslims of the fact that whatever wealth they may possess is due to the blessings of Allah and as such it is to be spent according to the His commands.

Zakat functions as a social security for all. Those who have enough money today pay for what they have. If they need money tomorrow they will get what is necessary to help them live decently.

Zakat

Zakat is the one of the fundamental pillar of Islam with out which a person can not called him or her self a Muslim. As every Muslim believes that every thing belongs to GOD and the wealth is just been to human as a trust to give it back in the way of GOD. The word Zakat means both 'purification' and 'growth' 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 of 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." (The Holy Qur'an 9:60).

It is agreed between Muslims in all the centuries the obligatory nature of paying Zakat for gold and silver, and from those the other kinds of currency, Islam has set some standard for paying ZAKAT which is defined by many Islamic scholars and Islamic ulemah with the guidance of hadith and Quran according to hadith and Quran 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. The nisab (or minimum amount) of gold and golden currency is 20 mithqal, this is approximately 85 grams of pure gold. One mithqal is approximately 4.25 grams. The nisab of silver and silver currency is 200 dirhams, which is approximately 595 grams of pure silver. The nisab of other kinds of money and currency is to be scaled to that of gold, 85 grams of pure gold. This means that the nisab of money is the price of 85 grams of 999-type (pure) gold, on the day in which Zakat is paid. (Current Gold Prices)

Zakat is due on every adult Muslim 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).

What is Zakat?

What is Zakat? Zakat is an obligatory duty and one of the five pillars of Islam. It is mandatory when two conditions are simultaneously satisfied which are Nisab and the Due Date. What is Nisab and its current value? Nisab is the exemption limit for the payment of Zakat. In other words, it is the amount which savings or capital or product must exceed in order for the Muslim owner to be obliged to give zakat. Nisab amount calculated based on 3 oz of pure Gold which is $2,580.00 as of 8/24/2009. When is Zakat due date? Zakat is due after one Lunar (Hijri) year starting from either the first day you acquired the amount of Nisab or the day you paid Zakat last year. The month of Ramadhan is considered to be the best time to pay Zakat. We urge you dear brother/sister to calculate your Zakat now and to pay it as soon as possible

How to Calculate Zakat-al-fitr

Calculate Zakat Today

Zakat is an obligatory duty for Muslims and one of the five pillars of Islam.

Many Muslims prefer to pay Zakat in the month of Ramadan. Note this is different from the Zakat-al-Fitr. Please scroll down for definitions.

It is mandatory when two conditions are simultaneously satisfied:

Nisab and Due Date

- Nisab: The current NISAB value is approximately $2500.00. It is 3 oz of pure Gold.

- Due Date: Zakat is due after one Lunar (Hijri) year starting from either the first day you acquired the amount of Nisab or the day you paid Zakat last year.

Please dear brothers and sisters, take the time now to calculate your Zakat and pay it as soon as possible. Do not rush at the last minute.

Zakat Calculator

In order to calculate your zakat, please fill all of the fields. If the amount is -0-, please put 0.

1. Cash on hand and in bank accounts (saving, checking, etc.)
2. Refundable deposits (e.g. on rented apartment)
3. Non-delinquent loans (money you loaned to others)
4. Expected Tax refund
5. Gold and its certificate (1)
6. Shares, stocks, bonds, IRA, pension plans, options, etc.
7. Business cash on hand and in banks plus invoices due.
8. Business inventory (2)
9. Net income you are entitled to as of Zakat due date.
10. Total amount subject to Zakat (lines 1 through 9).
11. Zakat amount : If the amount is 0, then no Zakat is due.

Below please refer below for clarifications on Zakat questions.

Zakat Questions Answered (Zakat FAQ)

When should Zakat be paid?

Zakat can be paid any time during the year, in one lump sum or in installments. However, at the end of each year one must calculate one's Zakat and the amount due but not paid must be paid. In actual practice, many Muslims prefer to pay Zakat in the month of Ramadan. This is also fine. Bear in mind that for agricultural produce, it is preferred to pay Zakat after the harvest.

What is Nisab?

In Sharia (Islamic Jurisprudence) nisab (نصاب) is the amount which savings or capital or product must exceed in order for the Muslim owner to be obliged to give zakat. Several hadith have formulas for calculating nisab. One of the most well known states that No Zakat is due on wealth until one year passes.

In general, nisab is considered an amount equal to the essential needs of a person or family for one year. In many modern societies, nisab is often interpreted to equate a governmentally determined poverty threshold.

What is Zakat-al-mal, and what is Zakat-al-Fitr?

Zakat-al-Mal is the obligatory charity paid by an individual to the needy. It is obligatory on an individual who possesses wealth equal to or above a minimum amount called Nisab for an entire lunar year. For the purpose of calculating Zakat, different categories of wealth are defined. Nisab for the category of "Personal wealth" is three ounces of gold (or its equivalent amount in money). However, this amount is defined for each type of wealth separately. See under Nisab.

Zakat-al-Fitr is a special charity paid to the needy on or before the day of Eid-al-Fitr, which is first day of the month of Shawwal following the month of Ramadan. An individual who is in possession of the Nisab, (three ounces of gold or its equivalent amount), on the day of Eid-al-Fitr pays this Zakat. For Zakat-al-Fitr, one does not need to possess Nisab for the entire lunar year. This is paid as atonement for any shortcomings in the worship of Fasting during the month of Ramadan. This is calculated as a fixed amount per person. An individual pays this on his/her behalf and the dependents. This amount is specified as the cost of one normal meal and therefore it varies based upon the time and place. One may estimate this amount oneself or contact any Islamic scholar or institution for help.

Source: https://baitulmaal.org

Who is eligible to receive Zakat?

The holy Qur'an specifies eight (8) purposes for which the money from Zakat can be used. They are the following.

1) Poor (Faqir pl. Fuqara'): One who cannot support himself/herself, provided (or to the extent) that the recipient of Zakat does not reach the level of Nisab.

2) Needy (Miskin pl. Masakin): One who cannot adequately support himself/herself, and is reluctant to ask for help. Such an individual, therefore, is not easily recognized as someone who needs help. Such an individual is eligible for Zakat, provided (or to the extent) that the recipient of Zakat does not reach the level of Nisab.

3) Those employed to administer the collection, distribution, and administration of Zakat (Al-'Amilin): They need not remain below Nisab at the time of receiving compensation through Zakat.

4) Those individuals who have been recently reconciled to the Truth (Mu'allafat-al-Qulub): This category includes new Muslims, or those who are willing to support the Muslim State but need to be compensated. They could be non-Muslims as well. Such individuals can be in possession of Nisab and will not be disqualified because of that.

5) Freeing of those in bondage (Fi-al-Riqab): Since the custom of bondage or slavery is now extinct, freeing of slaves may not be needed any longer. However, this can be interpreted to include individuals who due to excessive debt do not have any hope of ever standing on their own two feet.

6) Those in debt (Al-Gharimin): Zakat money could be received by on who is in debt in order to pay off the debt or a part thereof provided at the time of receiving Zakat, he/she is not in possession of Nisab.

7) In the cause of Allah (Fi-sabil-Allah): Those who are going out or working in the cause of Allah (including the task of conveying the message of Islam) or in a battle declared by an Islamic State for just cause. Being in possession of Nisab does not disqualify them.

8) The wayfarer (Ibn-al-Sabil): Traveler who is in need of help during his travel.
One who belongs to the family of the Prophet (Peace be upon him) is not eligible for receiving Zakat.

Source: https://baitulmaal.org

"Of their goods take alms, that so thou might purify and sanctify them; and pray on their behalf, verily thy prayers are a source of security for them."
(Quran, 9:103)

The Prophet said: "Charity is a necessity for every Muslim".

He was asked: 'What if a person has nothing?' The Prophet replied: 'He should work with his own hands for his benefit and then give something out of such earnings in charity.' The Companions asked: 'What if he is not able to work?' The Prophet said: 'He should help poor and needy persons.' The Companions further asked 'What if he cannot do even that?' The Prophet said 'He should urge others to do good.' The Companions said 'What if he lacks that also?' The Prophet said 'He should check himself from doing evil. That is also charity".