All that You need to know About Zakat
In islam zakat is a religious obligation on muslims in which they have to donate a certain portion of their wealth based on certain criteria that we will discuss below in detail. Zakat is one of the pillars of islam and helps to ensure circulation of wealth and does not allow it to accumulate only in the hands of a specific group of society.
Allah subhana wa ta’ala explicitly states in the Holy Quran: “And establish prayer and give zakat, and whatever good you put forward for yourselves – you will find it with Allah.” (2:110, Qur’an)
“Of their goods, take zakat, so that you might purify and sanctify them.” (9:103, Qur’an)”.
This obligatory charity has the potential to ease the pains and problems of millions of people around the world.
The word zakat literally means “to cleanse”. The Muslims in general believe that giving it is a way of purifying and is a source of increasing and blessing their wealth. As it is quoted in Hadees: “Whoever pays the zakat on his wealth will have its evil removed from him” (Ibn Khuzaimah and at-Tabarani).
It is also a way of connecting to our creator and believing that whatever we own belongs to Allah subhana wa ta’ala and we do what He wills in all matters.
Nisab for Zakat:
Nisab is the minimum amount of wealth on which zakt is mandatory. The muslims must possess it for over a year. Nisab for zakat is 87.48 grams (7.5 tola) of gold and 612.36 grams (52.5 tola) of silver, respectively. If a muslim kept this much gold, silver or wealth amounting to this much gold and silver for over a year then they have to give 2.5% of their total wealth to charitable causes.
On which assets it is applied?:
Zakat is only applied to those assets that have the potential to grow with time which are as follows:
Trading assets(This includes plots, houses,cars and business shares bought for the purpose of reselling and trading. This does not include rentals but the money that comes from them will be included when calculating nisab)
Cash
Gold and silver
Livestock(cow, goat,sheep and camels). There is a different nisab for this one.
Agricultural produce (This is called usher)
When can you give it?:
The amount of zakat is calculated when your wealth exceeds the given nisab within the year. It can be paid at any time of the year but generally people prefer to give zakt in the holy month of Ramadan. This is because the rewards and blessings of this month are far greater than any other time of the year.
Recipients of Zakat:
“Alms (here it means Zakat) are meant only for the poor, the needy, those who administer them, those whose hearts need winning over, to free slaves and help those in debt, for God’s cause, and for travellers in need. This is ordained by Allah; Allah is all knowing and wise.” (Quran 9:60)
Here are the eight categories of recipients of Zakat: