The objectives of Zakat
The giving and taking of Zakat
Conditions that make Zakat Obligatory
On whom Zakat is obligatory
Zakat on the woman's Mehr
Zakat on the Business Goods or Stock-in-Trade
Zakat on company or partnership, Silver, Gold, Currency
and Shares
Zakat on the Ornaments of a woman
Zakat of the Bank Deposit and on Provident Fund
Zakat on Agricultural Produce (Ushr)
Zakat on Animals
Zakat on Minerals and Buried Wealth / Treasure
From a study of the Holy Quran and
Traditions of the Holy Prophet, it transpires that there are three
objectives of Zakat (poor-due). One is basic and specific
and the other two are secondary and collective.
The basic and essential objective of Zakat
is purification of the soul. It cures the lust for wealth, infuses
the feat Allah in mans heart and makes one amenable to good deeds.
The Holy Quran says: And away from it (Hell) shall be kept
the most pious one, who gives away his wealth in order to purify
himself. (XCIL:17-18)
On another occasion Allah addresses and exhorts
the Holy Prophet (Pbuh) in these words: Take alms of their
wealth, wherewith you may cleanse and purify them. (9: 103)
These verses make the real importance of Zakat
quite clear: it aims to emancipate the heart from temporal preoccupations
and purifies the soul.
It is an acknowledged fact that the love of material
things is the real enemy of prayer. It turns a man away from Allah
and the After-life. The Holy Prophet once said: The root
of all evil is the love of worldly things. (Mishkat)
Although temporal love includes many things the
most powerful and dangerous of all is the love of material wealth.
The Holy Prophet has, therefore, regarded it as the greatest of
all evils for the Muslims: The trial for my Ummah is wealth.
(Tirmidhi)
If a Muslim can save himself from the lure of wealth,
he will be able to protect himself from many other vices.
Because of its basic aim and purpose, poor-due
is known as zakat in Islam. Literally it means both purification
and growth. To give a portion of ones income to the needy for
the pleasure of Allah is called Zakat because it purifies
the soul. It must, however, be remembered that the aim of zakat
is achieved only when its payment is motivated by sincere desire
and practical effort. The pleasure of Allah should be the first
and foremost consideration while paying Zakat. It must
be free from every other motive.
Zakat should be paid out of the income earned
only by fair and honest means. Whatever is paid should be respectable.
If cheap and worthless stuff is given in zakat it will go in vain.
It will be no better than a hypocritical gesture.
Zakats beneficiary should neither be made
to feel grateful for it, nor should his feelings and self-respect
be hurt. Otherwise, Zakat will cease to have any meaning.
One secondary objective of the poor-due is to provide
basic necessities to poor Muslims. The Holy Prophet said: Verily
Allah has ordained the payment of Zakat on them (Muslims). It
will be taken from the rich and returned to the poor. (Muslim)
These Traditions make it quite obvious that there
is also a social and economic aspect of the poor-due without which
its Islamic concept remains incomplete.
The other secondary objective of Zakat is
the help and support of Islam. While giving the details of the
beneficiaries of Zakat the Holy Quran says: The alms are
only for the poor and the needy, and for 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.
(9:60)
The words the cause of Allah denote the struggle waged for Islam,
particularly for meeting the requirements of Jihad.
* If a person earns money from a fixed property
but the whole amount is spent in the course of the year, then
he does not become liable to pay Zakat. But if he has saved a
portion of the income and if this saving reaches or exceeds the
minimum Nisab limit, then he will
be liable to pay Zakat, provided the amount in question remains
in his possession for 12 months. (Lunar)
* If a person owns buildings other than those meant
for his own or his dependants use, and he has rented them out
to others, the he will have to pay Zakat on the net income from
the rent, provided the income is above the minimum Nisab limit
and remains in his possession for 12 months.
* The value of any vehicle used in the course of
trade to earn a living is exempt from the obligation of Zakat.
But the net income earned from its use, and which remains with
the owner for one full year, will be subject to payment of Zakat.
* There is no Zakat on farmland owned by a person,
irrespective of the amount of its value or its size, provided
it is not bought for speculation.
* The capital involved in goods, properties and
livestock owned for trade or commerce is subject to the payment
of Zakat: that is, if a person began trading with a capital of
Rs.50,000 and earned profits thereon, then he will have to pay
Zakat on the total amount, and not just on the profits earned.
* Therefore, a person having a capital of Rs. 50,000
and earned Rs. 50,000 profits in due course will have to pay Zakat
on Rs. 60,000 (capital plus profit), which will be the total amount
reflected in the balance-sheet.
* The determination of the minimum Nisab
on trade goods will be according to the value of the goods in
cash which would purchase 7 1/2 tolas of gold (88 gram) or 52
1/2 tolas of silver (632 gram).
* When trading in partnership, each partner will
be liable to pay Zakat on the proportion of the net share of profits
coming to him which is added to his capital.
* Zakat on shares owned by one shall be determined
annually on the cash realisable market value of the shares, which
must be included in the capital and Zakat paid on the total as
required by Islam.
* Persons who buy goods on credit for the purpose
of trade must deduct the total amount of their debts and determine
their net profits, and add these to their capital for calculating
the payment of Zakat.
* Money saved for Haj is also liable for Zakat
if it is kept for a year or more and is within the Nisab.
* If someone gives Zakat money to a person as a
loan but makes niyyat (intention) of Zakat, then the obligation
of paying Zakat will be discharged. He cannot thereafter collect
the money given away as a loan.
* If a person deserving Zakat is thought to be
embarrassed in accepting it, the Zakat money could be given to
him as a gift or present on a suitable occasion; but the intention
of the giver must be of Zakat at the time of giving the money.
Similarly, to give Zakat money as a gift to the children of the
poor is also permissible.
* If a person owes you money and is unable to repay
it on account of poverty, you cannot pay yourself his debt with
your own Zakat money and consider that the obligation of paying
Zakat has been discharged. Zakat money must be handed to the debtor
and payment asked for thereafter.
* The amount of Zakat given to any one person should
not be less than what could satisfy his needs for atleast one
day.
* If Zakat money is given to a person whom you
thought deserved it but later found out that he does not, the
obligation of paying Zakat will be discharged and you will not
have to pay Zakat again.
* If a person is not entitled to Zakat and is given
Zakat money, then he should refuse to accept it: or if given,
he should return it to the giver immediately because it is forbidden
for him to accept Zakat.
* The first claim on Zakat money is of deserving
relatives, then the deserving poor of the village, town, city
or country in which one lives. If the needs of the people of another
area are more deserving and urgent, the Zakat could be sent to
them too.
* If the giver is doubtful about the position of
the person seeking Zakat, then he should not give his Zakat to
him at all, because the giving of Zakat in such circumstances
is not permitted.
* The subject of Zakat has been dealt with here
in the light of Hanafi Fiqh (jurisprudence)
There are two conditions for Zakat to be obligatory on the wealth.
1. Being in possession of Nisab i.e. possessing
property in excess of a minimum exemption limit.
2. On completion of one Lunar year on the wealth.
According to Hanafi if a person possess wealth equal to or in
surplus of Nisab in the beginning and at
the end of the lunar year, (even though in between the year, the
wealth was less than the Nisab), Zakat is obligatory, but if at
the end of the lunar year if the wealth is less than the Nisab
(though one had wealth equal to or in surplus during the year)
zakat is not obligatory. According to Shafie the passage of one
lunar year is a must on the wealth (Nisab) (in Hanbali almost
a year). The zakat is calculated on the day on which a year is
completed on that wealth (Nisab). Nisab:
Zakat is paid on the surplus of wealth which is left over after
the passage of a year(Lunar Year). It is thus a payment on the
accumulated wealth, leaving our animal and agricultural yield.
Zakat is pain at almost a uniform rate of 2 1/2%. The minimum
standard of surplus of wealth over which Zakat is charged is known
as Nisab. It differs with different kinds
of property. In case of silver it is 52 1/2 Tolas (634 grams),
in case of gold it is 7 1/2 Tolas (88 grams). The Nisab
for cash is the same as that of gold and silver.
Zakat is obligatory of every Adult free Muslim
man and woman provided the above two conditions are fulfilled.
According to Imam Malik, Shafie and Imam Ahmed bin Hanbal, Zakat
is obligatory of the wealth of the Minor and insane person, and
it has to be paid by the guardian. Where as according to Imam
Abu Hanafi it is not obligatory. Since Zakat is an act of worship
the intention is a must and hence it is not obligatory on the
wealth of a minor and the insane person.
According to Imam Abu Hanafi and Imam Malik, the
wife need not pay Zakat on the Mehr amount still due by her husband.
However Zakat will have bo be paid on the amount she has claimed
provided it is equivalent to or more than the Nisab
and on which one year has been completed. According to Imam Shafie
the wife has to pay the Zakat every year (though she herself is
not claiming the Mehr, even though it can be claimed). According
to Hanbali the Wife has to pay the Zakat for the entire number
of years at the time when she gets it.
All types of goods for sale,
whatever may be its form, whether hand made or machine products
or fruits or books or jewellery or clothes or cattle or property
brought with the intention of buying and selling etc., are liable
for zakat. Provided it is in ones possession for one complete
lunar year and the rate of zakat applicable is 2 1/2% on its total
value. The prescribed limit on goods is after conversion, in terms
of its value, the total amount thus evaluated must be equivalent
to the price of 634 grams of silver. If less, then zakat is not
obligatory.
If any wealth
or property is held jointly by two or more persons, then according
to Imam Abu Hanafi and Imam Malik Zakat is not obligatory on any
person until each individuals share is equal to the value of the
Nisab. Zakat on Silver, Gold, Currency and
Shares. The minimum prescribed limit on which Zakat becomes obligatory
on silver is 52 1/2 Tolas (634 grams), and of gold 7 1/2 Tolas
(88 grams) and is known as Nisab. Zakat on
silver or gold items is one fortieth of its weight, i.e. 2 1/2%.
Zakat on silver or gold is not calculated on its value but on
its weight. However if one possesses some gold and some silver
and neither of them is in the prescribed limit, then it their
total cost is equal to the price of 634 grams of silver, Zakat
becomes due on it.
Zakat is due on all the gold and silver ornaments,
jewellery, and gold or silver lace woven into clothe, gold thread
embroidered dresses for ladies, etc. Hadrat Umm Salmah says that
she used to put on (gold) bracelets. When she asked the Holy Prophet
whether it was Kanz (Hoarded wealth) he replied.
When a piece of property reaches upto the prescribed
limit and Zakat is duly pain on it, it is not Kanz. (Abu Dawood)
Imam Abu Hanafi, his disciples and some scholars
hold the above opinion. According to Imam Malik, Shafie, Imam
Ahmed bin Hanbal and other scholars there is no Zakat on the womans
ornaments. According to some other scholars the Zakat on ornaments
is due only once in a lifetime. The difference of opinion among
scholars is only on the ornaments in use by the woman, but there
is a consensus among all the scholars that Zakat is liable on
the excess of the ornaments held in possession as wealth.
Both these fall under the status
of debt. According to Hanafi school of thought: Both of them are
liable for Zakat for all the years and it has to be paid when
out of it an amount equivalent to the value of 10 1/2 Tolas of
silver or more is claimed. According to Hanbali school of thought
also that Zakat is liable on both for all the years. It has to
be paid when an amount equivalent to the Nisab
or more is claimed.
According to Malliki school of thought the Zakat
on Bank deposit is liable for all the years. And it has to paid
when the amount is received. On the provident fund, since the
person does not have any power to claim it, so Zakat is liable
at the time when it is received and it has to be paid for one
year only. According to Shafie school of thought the Zakat on
the Bank Deposit has to be paid every year. The Zakat on provident
fund has to be made for all the years and it has to be paid when
he is entitled to receive it, though he may claim it or not in
time.
The Prophet (Pbuh) said: On a land irrigated by
rain water or by natural water channels or if the land is wet
due to a near by water channel Ushr (i.e. one-tenth) is compulsory
(as Zakat); and on the land irrigated by the well, half of an
Ushr (i.e. one twentieth i.e. 5%) is compulsory (as Zakat on the
yield of the land).
A basic principle has been laid down for the Sadaqa
(Zakat) in the agricultural produce. If the land is irrigated
by artificial methods, one twentieth part (5%) of the yield is
to be paid is irrigated by rainfall, streams, rivers, fountains
or by the inner moisture of the earth, i.e., by natural resources
of water, then one tenth (Ushr) 10% is to be paid as Zakat. There
is some difference of opinion whether Ushr is levied on all types
of agricultural yield or on some particular types.
According to Imam Abu Hanafi, Zakat is to be paid
on all types of agricultural yield, provided the aim of cultivation
is to improve upon the land and make it more useful for growing
of crops. Thus only fuel, bamboo, grass and trees which bear no
fruits are exempted from Zakat. He considers Zakat to be compulsory
even on vegetables and fruits, which according to some Hadith,
are exempted from Zakat. The scholars have reconciled the two
views saying that the exemption granted in case of vegetables
implies that the proceeds of the Zakat are not to be sent to the
Bait ul Mal, but the owner may himself distribute it among the
poor.
Ushr is to be paid at the time of harvest. Whereas
in the other types of Zakat one should be in possession of the
wealth for one complete year.
Zakat
is obligatory on goats, sheep, cows, buffalos and camels which
graze on wild grass, plant leaves and on some feed now and then
given by the owner, and on the above animals meant for sale.
The Prophet (Pbuh) said: By Allah in whose hand
my life is, whoever had camels or cows or sheep and did not pay
their Zakat, those animals will be brought on the Day of Resurrection
far bigger and fatter then before and they will tread him under
their hooves, and will butt him with their horns and (those animals
will come in circle) when the last does its turn, the first will
start again and this punishment will go on till Allah has finished
the judgments amongst the people. (Bukhari)
Zakat on Minerals and hidden wealth
is one twentieth 5%. According to Imam Abu Hanifa, minerals are
classified into three groups:
1. Gold, Silver, Brass, Bronze, Iron etc.
2. Crude Oil, etc.
3. Diamonds, precious stones etc.
Zakat on the first group only is Waajib (compulsory)
and is to be paid at the time of acquiring. Here minimum period
of one year in possession does not apply.
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