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The
Prophet Muhammad (peace and blessings be upon him) said, “Islam is based on
five (principles): to testify that there is no deity but Allah and that Muhammad
is Allah’s Messenger; to offer the compulsory Prayers (salah) dutifully and
perfectly; to pay zakah (obligatory charity); to perform Hajj (pilgrimage to the
Ka`bah in Makkah); to observe fast during the month of Ramadan.”
(Reported by Al-Bukhari)
The
Muslim individual is required to pay zakah as an expression of obedience to
Allah. It goes hand in hand with salah (ritual Prayers); one is the
bodily expression of submission to the Creator, the other is the financial
expression of the same. Therefore, zakah is obligatory for Muslims.
In
the Qur’an, Allah says what means:
[Take
alms of their wealth, wherewith thou mayst purify them and mayst make them grow,
and pray for them. Lo! thy prayer is an assuagement for them. Allah is Nearer,
Knower.]
(At-Tawbah 9:103)
A
man once came to the Prophet Muhammad while he was sitting with his Companions
and said, “I ask you by your Lord and the Lord of those who were before you,
has Allah ordered you to take zakah from our rich people and distribute it among
our poor people?” The Prophet
replied, “By Allah, yes.” (Reported by Al-Bukhari)
In
addition to helping the poor, the system of zakah also encourages Muslims to
invest and use their wealth. The second caliph, `Umar ibn Al-Khattab, advised
the Muslims, “Trade with the property of orphans before it will be eaten away
by zakah.” (Reported by Malik)
Two
Types of Zakah
Zakat
al-fitr (zakah of breaking the fast) is a fixed amount that has to be
paid—by rich and poor alike—by the head of the household for every member of
his or her family before the `Eid Prayers at the end of Ramadan.
Zakat al-mal (zakah of wealth), on the other hand, can be paid anytime
and each individual is responsible to pay his or her own zakah. The amount of
zakah is variable according to the person’s wealth.
Islam
considers the woman as an independent legal entity with rights and duties of her
own. Therefore, every Muslim—man or woman, child or adult—whose wealth
exceeds the nisab (the minimum zakatable amount) and who has had this
amount for a whole lunar year must pay zakat al-mal.
When
to Pay Zakah
Generally,
if a Muslim has had the nisab for a lunar year, the zakah is due.
However, the zakah on agricultural products is due at harvest time. Likewise,
the zakah on metals/minerals that are mined is due at the time of extraction.
Many
Muslims choose to pay their zakah in Ramadan, for during this month their good
deeds receive greater reward than at other times. Many also make Ramadan the end
of their fiscal year and keep their financial records according to the Islamic
calendar. If records are kept according to the Gregorian calendar, the rate of
zakah will be slightly higher to compensate for the extra days in the solar
year.
It
should be noted that if a Muslim dies before paying the zakah, his or her heirs
must pay it before dividing the legacy.
Nisab
and Rate of Zakah
If
a person’s wealth (over and above his/her needs) reaches the nisab which is
the value of 85 grams of gold, whether in savings, property, jewels, land,
produce, or livestock, he or she must pay zakah.
How
much to pay in zakah is probably the first question that comes to mind.
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For
savings, stocks, mutual funds, gold
and jewelry
that is kept (not worn), the amount to pay is 2.5% (based on the lunar
calendar) on the marked value of the assets.
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Land
which is bought as an investment to be sold later for a profit should be
appraised annually, and 2.5% (based on the lunar calendar) of the value is
paid as zakah.
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If
land is bought to build a house on it, zakah is not required on it. But if
later the property is rented, then zakah is due.
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Zakah
is due on produce such as vegetables, fruits or grains if the nisab is
attained, which is 650 kilograms (1,433 pounds). The rate of zakah is 5% (of
the crop or its value) if the land is irrigated with a mechanical device or
with purchased water, and 10% if the land is watered naturally without the
use of artificial means.
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Zakah
is payable on livestock, but the nisab (the minimum number of animals) and
the amount of payment varies according to the type of animal.
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Zakah
is due on metals/minerals that are mined and buried treasures that are found
at the rate of 20% (one-fifth) of the value, payable when they are mined or
found.
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There
are two opinions on whether or not zakah is due on pearls, coral, and other
wealth from the sea after the nisab (minimum zakatable amount) is reached.
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If
one has a factory or business, zakah is paid on the raw materials, goods in
process, and stock for trade. Zakah is not paid on the land, buildings, or
machinery and other fixed assets. If one has a service business, zakah is
paid on the annual profits.
Who
Can Receive Zakah
In
the Qur’an, Allah says what means:
[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.] (At-Tawbah 9:
60)
Needy
relatives such as brothers, sisters, uncles, aunts, nephews, nieces, etc. can
receive the zakah if they are poor and need help. Indeed, giving to them is both
an act of charity and of maintaining family ties. The Prophet (peace and
blessings be upon him) said, “Charity given to a poor is charity and charity
given to a relative is charity and maintaining family ties.” (Reported by
Ahmad and An-Nasa’i) However, zakah cannot be given to one’s wife, children,
grandchildren, parents and grandparents because it is one’s duty to take care
of them first.
One
category of zakah recipients is fi sabil lillah (for the cause of Allah),
which leaves the Muslim a wider scope to pay the zakah.
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Reference: Fiqh us-Sunnah by Sayed Sabiq & IslamOnline Fatwa Corner |
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