Zakat

Zakat (3rd Pillar)Literal Meaning: To Purify, To Clean, To Increase, To be clear, To justify, a form of Sadaqah given to the poor.

“ Purifying one’s wealth to gain Allah’s blessing to make it grow in goodness”

Islamic tax for Charity: A tax that goes to charity, obligatory for all Muslims, set traditionally at 2.5% of somebody’s income and capital.

A defined portion of man’s wealth that is designated for the poor.

Nissab and Rate of Zakat

Nissab Zakat1-Cash, Gold, Silver-----2.5%2-Produce from mines----Khums one fifth from the

production of mines3-Land Tax ------------Usher A-rain produced----------------- One-tenthB-irrigated land produced-------One twentieth4-Sheep and Goats Every 40-1 goat, 121 to 200-2

sheep, over than every 100-15-Bulls, Cows, Buffaloes 30-40:1 calf of 1year, every 40-

1calf of 2yearsCamels: every 5:1goat or sheep, 10-14: 3goats, 25-35: a

female camel and so on….Sadaqatul Fitr End of Ramazan-ul Mubarak

Distribution & Importance of Zakat

Surah Al-Baqarah: 177

TranslationIt is not righteousness that ye turn your faces Towards east or West; but it is righteousness--to believe in God and the Last Day, and the Angels, and the Book, and the Messengers; to spend of your substance, out of love for Him, for your kin, for orphans, for the needy, for the wayfarer, for those who ask, and for the ransom of slaves; to be steadfast in prayer, and practice regular charity; to fulfil the contracts which ye have made; and to be firm and patient, in pain (or suffering) and adversity, and throughout all periods of panic. Such are the people of truth, the God.fearing.

Surah Toba:60

Alms are for the poor and the needy, and those employed to administer the (funds); for those whose hearts have been (recently) reconciled (to Truth); for those in bondage (burden, oppression) and in debt; in the cause of Allah. and for the wayfarer: (thus is it) ordained by Allah, and Allah is full of knowledge and wisdom.

Eight Categories• Fakir: - Poor, less than Nissab• Maskin:- Extremely poor, forced to beg• Amil: - Collectors of Zakat, appointed

by Head of State• Muallaf-ul-Qaloob:- Recently accepted islam• Riqab: - Slaves, Payment for

their freedom• Gharimin:- People in debt• Fisabillillah:- fights for the cause of Allah• Ibnus Sabil:- One who is stranded in

journey

Surah Al-Baqarah: 277

Those who believe, and do deeds of righteousness, and establish regular prayers and regular charity, will have their reward with their Lord: on them shall be no fear, nor shall they grieve.

• Backbone of Islamic Economic System

• Welfare Tax• Purifies ones Soul and heart• Clean ones wealth• Remove envoy, Jealousy• Remove hatred• Establish Self Supporting Society• Economic Security for the poor

• Prevent accumulation of wealth• Increase Wealth• Pleasure of Allah• Blessing of Allah• Shelter at the Day of Judgment• Safety from losses and calamities• Increase in Life

•Punishment for not giving Zakat

For Whom Zakat is Obligatory

• Muslim• Adult• Sane Person• Free• Owns wealth value to the Nisaab

Types of Wealth on which Zakat is Obligatory

• Gold• Silver• Cash• Mixture of Gold and Silver and other metals• Merchandise for business equal to Nisaab• Livestock• Income from hiring business, crockery, motor

cars, vans, trucks

• Wealth fully owned by him• In excess pf his personal needs• Possessed complete lunar year• Productive nature which can derive

profit • Stock in trade• Good in transit• Cash at bank• Savings account• Fixed Deposit• Claims• Other saving household balance

Types of Wealth on which Zakat is not obligatory

1. Other metals besides Gold, Silver2. House used things, livings e.g.3. When liabilities exceed or equal

his assets

Niyyat of Zakat

Method of distributing Zakat

• Intention• As soon as possible after it becomes due• After passing one year• Can be given full amount to one person or

several persons• Not paid in return of services or as

remuneration• Giver/ payer of Zakat Should be owner • Before time also valid• Poor students can be given bursary (grant)

from Zakat• In shape of same merchandise in which it is

due or alternatively in cash.

Entitlement of Zakat

• Zakat can not be given to Banu Hashim.{ Children of Hazrat Fatima, all the members of the family and wives of Holy Prophet Hazrat Muhammad (SAW)}.

• Can not be given to parents, grandfather, children and grand children, husband, wife.

Home Assignment

• How Zakat is important and what role does Zakat play in helping needy members of Muslim Society to earn their livings?