All you need to know about Zakah

Zakah is one of the five pillar's of Islam. Zakah means something which purifies person's soul as well as his wealth. It is given for uplift-ment of the Ummah.

It is also a form of worshiping Allah [SWT]. People on the day of judgement will be under the shade of their charity. Our wealth can be one of the means to enter Jannah.

Who should give Zakah?

Zakat becomes compulsory on a muslim who has excess wealth (savings) which has reached Nisab level for a period of ONE whole lunar/Hijri year.

2.5% of the total savings (see categories of wealth below) should be given in charity every year. Zakat is given only from Lawful earnings!

Categories of wealth upon which Zakah is Obligatory:

1. Al-Khiraj, i.e products from the earth such as grains (e.g. rice, wheat, cotton,etc) and fruits.

2. Freely grazing livestock

3. Gold and silver

4. Or whatever substitutes them such as Cash/bank savings or Business investments [such as shares, property/plot (If anyone has the intention of selling it, he must give zakat on his property/plot based on its current value for every year)].

What is Nisab level?

Nisab means Threshold level. While calculating Zakat, we need to see if we satisfy the Nisab level for ONE complete Lunar year/Hijri year (i.e. a period of twelve lunar months, approximately 355 days) on the savings (categories above) of a person.

For Gold, the Nisab (Threshold) level is 85 grams i.e 8 and half tola. One tola is equivalent to 10 grams. Zakat on Gold should be given on its 2.5% with today’s gold rate.

If a person has Gold/Gold ornaments more than Nisab level and does not have cash (or bank savings) to give its Zakah, he/she may give 2.5% of total gold in its current form or money obtained by selling it.

Nisab level of cash/bank savings: If your cash/bank saving is more than or equal to value of 85 grams of gold (in your country of residence), you need to give Zakah on that.

Categories of people to whom Zakah could be given:

Allah says..."Zakah expenditures are only for the poor and for the needy and for those employed to collect [zakah] and for bringing hearts together [for Islam] and for freeing captives [or slaves] and for those in debt and for the cause of Allah and for the [stranded] traveler - an obligation [imposed] by Allah. And Allah is Knowing (Al Aleem) and Wise (AL Hakeem)." ~ Surah Taubah 9: Verse 60

From the above verse we conclude the following 8 categories:

1. To a poor person who has absolutely nothing. He is a Fakhir who doesn’t have means to sustain life. May be he has food for lunch but not for dinner. May be he has clothes on him but doesn’t have a shelter to live in.

2. To the needy person, a Miskeen: (a) who has little money but has debts (b) who doesn't have enough money for living (c) who has a house but cannot provide for his children (d) who do not have minimal acceptable living (e) who is struggling for food (f) who has the minimum for sustaining but still is needy- he may have a house to live in, a car, food, but may not have medication money such as Diabetes medication, cancer medicines, one of his children requires an operation – he would fall sick or die if he doesn't have it (g) who has no money to buy books for his children to go to school, or to buy their uniforms (h) To a student who wants to pursue an Islamic education but doesn't have funds (i) who wants to study medicine, but doesn’t have funds (j) who wants to marry and cannot pay his mahr. It is permissible to give our zakat to all such needy persons.

3. To those who collect zakat and distribute it, zakat could be given as their salaries.

4. To those whose hearts are inclined towards Islam.

5. To free a captive/slaves.

6. To those who are severe debtors.

7. For the cause of Allah [SWT]- for dawah centres.

8. Wayfarer- a person who travels on foot and are cut of from their source of income.

The receiver of Zakah needs to be a Muslim (or non-muslim with hearts inclined towards Islam) and should fall into one of the above categories. It is permissible to give one's entire Zakah to a single person if he needs all of it. Our close relatives have first right on our zakat but they must not be direct dependent on us. If any of the above mentioned categories is met, Zakat could be even given to our own Brothers and sisters too if the parents are not able to support them.

Categories of people to whom Zakah cannot be given:

Zakah cannot be given to (a) non Muslims (except those whose hearts are near to Islam, only then it is acceptable) (b) to ones Parents (c) Grandparents (d) sons (e) grandsons (f) wife (g) Rich and healthy people (h) to masjid administration (i) for burials (j) for printing the Quran (k) for educational centers (like colleges and schools which teach non-Islamic education which is not in the cause of Allah) (l) to any relative or non relative whom we had brought to our house and they live with us for the rest of their life (m) to such a person who is not pious and spends money in some bad things (like for buying alcohol, gambling).

What you spend as Zakat is not lost but is either compensated back or given back as multiplier:

Zakah is mentioned more than 82 times in The Quran.

Allah says..."Take, [O, Muhammad], from their wealth a charity by which you purify them and cause them increase, and invoke [Allah 's blessings] upon them."

~Surah Taubah 9: Verse 103

Allah says..."Say, Indeed, my Lord extends provision for whom He wills of His servants and restricts [it] for him. But whatever thing you spend [in His cause] - He will compensate it; and He is the best of providers." ~Surah Saba 34: Verse 39

And whatever you give for interest to increase within the wealth of people will not increase with Allah . But what you give in zakah, desiring the countenance of Allah - those are the multipliers. ~ Surah Rum 30: Verse 39

Zakah is also a sign of True Belief:

Allah says... "The ones who establish prayer, and from what We have provided them, they spend.

Those are the believers, truly. For them are degrees [of high position] with their Lord and forgiveness and noble provision." ~Surah Anfal 8: Verses 3-4

Consequences of withholding the Zakah:

1. Allah says..."O you who have believed, indeed many of the scholars and the monks devour the wealth of people unjustly and avert [them] from the way of Allah. And those who hoard gold and silver and spend it not in the way of Allah - give them tidings of a painful punishment." ~Surah Taubah 9 : verse 34

2. Allah says..."The Day when it will be heated in the fire of Hell and seared therewith will be their foreheads, their flanks, and their backs, [it will be said], "This is what you hoarded for yourselves, so taste what you used to hoard."" ~Surah Taubah 9 : verse 35

3. Narrated Abu Huraira: Allah's Apostle (SWS) said, Whoever is made wealthy by Allah and does not pay the Zakat of his wealth, then on the Day of Resurrection his wealth will be made like a bald headed poisonous male snake with two black spots over the eyes. The snake will encircle his neck and bite his cheeks and say, 'I am your wealth, I am your treasure.' Then the Prophet recited the following holy verse ~Sahih Bukhari 1403

Allah says...And let not those who [greedily] withhold what Allah has given them of His bounty ever think that it is better for them. Rather, it is worse for them. Their necks will be encircled by what they withheld on the Day of Resurrection. And to Allah belongs the heritage of the heavens and the earth. And Allah, with what you do, is [fully] Acquainted. ~Surah Al Imran 3: verse 180

What should be our ultimate intention while giving Zakat:

Allah says..."And whatever good you [believers] spend is for yourselves, and you do not spend except seeking the countenance of Allah . And whatever you spend of good - it will be fully repaid to you, and you will not be wronged." ~Surah Baqarah 2 : Verse 272

Our ultimate target is to please Allah. We should not expect anything in return from the zakat taker. This is really important or else our zakat may go waste.

Zakat should be given at most on the 355th day. It is not liked if giving Zakat is delayed. We can give little more, but not little less.

These are the general points collected from authentic sources. Still if any person wants to know exactly about his situation on giving Zakat, make sure to speak to Muftis on your scenario.