Zakat 3rd Pillar of Islam: Transforming of Your Wealth into Blessings

What is ZAKAT

Zakat is a word in the Arabic language( Zakhat in Hindi जकात) whose literal meaning is “purification” or “growth.” It signifies that giving financial support to needy people helps purify one’s wealth from greed and selfishness, promoting generosity and compassion. We may say that the purification of wealth is called Zakat. 

In Islamic Sharia terminology, it refers to the mandatory contribution or charity that Muslims are obligated to give to support those in need and to purify their wealth. It is not just about charity; it carries deeper spiritual and social significance within the Islamic faith. It is the 3rd Pillar of the Five Pillars of Islam.

Zakat Meaning Pic

ZAKAT CALCULATOR

HISTORY OF ZAKAT

The concept of Zakat has its roots in early Islamic history. It was established by the Prophet Muhammad as a fundamental pillar of Islam, along with other pillars like prayer, fasting, and pilgrimage. The Quran, the Holy Book of Islam, mentions it numerous times, emphasizing its importance in the lives of Muslims.

The history of it can be traced back to the time of the Prophet Muhammad, who implemented it as a means of social welfare and economic justice in the nascent Muslim community in 7th century Arabia. Initially, it was primarily collected in the form of agricultural produce, livestock, and other tangible assets. Over time, as Muslim societies evolved and expanded, Zakat came to encompass various forms of wealth, including currency, gold, and silver.

During the early Islamic caliphates, this third pillar played a central role in financing public infrastructure, social services, and charitable initiatives. It was collected and administered by the state, which distributed the funds to various beneficiaries, including the poor, orphans, widows, and those in need.

TYPES OF ZAKAT

Zakat al-Mal: This type is based on wealth and is a mandatory charity act that forms one of the five pillars of Islam. It is a way for Muslims to purify their wealth and fulfill their social responsibility by contributing to the well-being of the less fortunate. 

This applies to various assets like money, gold, silver, livestock, and business inventory, each with specific requirements and calculations for determining the amount due. This type is crucial in promoting social justice and fostering compassion within Muslim communities by creating a regular flow of resources toward those in need.

Zakat al-Fitr: Zakat breaking the fast, is a unique form of charity specifically given at the end of Ramadan, the Holy month of fasting. This mandatory act is a way for Muslims to celebrate the completion of Ramadan and share their blessings with those less fortunate. 

Unlike Zakat al-Mal, which requires specific calculations based on wealth, the latter has a fixed amount, typically the equivalent of 2.5 kg or 3.5 liters of staple food like rice, wheat, or dates. This ensures that everyone, regardless of their financial situation, can participate in this act of charity and contribute to the spirit of Eid al-Fitr, fostering community solidarity and compassion.

METHOD OF DISTRIBUTING ZAKAT

Direct Distribution: This method involves giving Zakat directly to eligible recipients. Donors may personally identify individuals or families in need within their communities and provide them with funds or goods.

Zakat Committees: Many communities establish different committees or organizations responsible for collecting and distributing said funds. These committees verify the eligibility of recipients and allocate amounts based on their needs.

Social Welfare Programs: Zakat funds may be channeled into social welfare programs administered by governments, non-profit organizations, or charitable foundations. These programs aim to address poverty, hunger, healthcare, education, and other basic needs of eligible beneficiaries.

Microfinance and Entrepreneurship: Some Zakat funds are used to provide interest-free loans or grants to empower individuals to start small businesses or income-generating projects. This approach aims to promote self-sufficiency and economic empowerment among recipients.

Debt Relief: Zakat can be used to help individuals or families burdened by debt. It may involve paying off debts directly or providing financial assistance to alleviate the financial strain caused by loans or outstanding obligations.

Emergency Relief: Zakat funds may be allocated for providing emergency relief to communities affected by natural disasters, conflicts, or humanitarian crises. This includes providing food, shelter, medical aid, and other essential support to affected populations.

Educational Support: This fund can be utilized to support educational initiatives, such as scholarships, tuition assistance, or school supplies, enabling underprivileged individuals to access education and improve their livelihoods.

Who is subject to pay Zakat

Muslim: It is obligatory on every adult Muslim male and female. Non-Muslims are not required to pay.

Free adult: Individuals who are enslaved or under guardianship (minors, mentally incapacitated) are not required to pay Zakat.

Financial stability: A person who is a Nisab holder and the property (reaching the value of Nisab) upon which they are going to pay Zakat remains in their possession for one year or more.

One lunar year of ownership: The wealth must have been owned for a full lunar year (approximately 354 days) to be considered eligible.

pic of person who is competent to pay zakat

To whom can Zakat be given

1. Faqir, Faqir is a person who has some wealth, but not enough to reach the nisab.

2. Poor, a poor person is a person who has nothing, even for food and shelter; he is in need of asking people.

3. Aamal, Aamal is one who is appointed by the King of Islam to receive Zakat and Ushar, he can also be given. (But nowadays it is obsolete due to the lack of an Islamic government).

4. Riqab means freeing the neck from slavery, but now there are no slaves and it is not time to spend this money in this regard.

5. Gharam, Gharam means indebtedness; that is, he has so much debt that there is no balance left after paying it off.

6. Fai sabil Allah, Fa sabil Allah means spending in the way of God; it has several forms: For example, a Mujahid wants to go for Jihad, but he does not have a ride, Zadrah, weapons, etc. Zakat money can be given.

If someone wants to go for Hajj and does not have wealth, he can be given an amount from this fund, but it is not permissible to ask him for Hajj.

7. Ibn al-Sabil, Ibn al-Sabil refers to a traveler; if the traveler runs out of wealth, he can also be given the amount of zakat even though he has wealth in his own country or as a student. If he wants to study knowledge and religion, he can also give an amount of funds which is also to be given in the way of God.

To whom Zakat cannot be given

Family: You can’t give Zakat, Fitrana, or Ushar to your family like parents, grandparents, children, or grandchildren.

Husband: Husbands can’t give Zakat, Fitrana, or Ushar to their wives.

Rich People: You shouldn’t give that amount to rich people or Sayyids.

Non-Muslim: And definitely not to someone who doesn’t believe in your faith.

How Zakat is Calculated

Identify all your assets: This includes cash, bank savings, investments, property (excluding your primary residence), and business inventory exceeding operational needs.

Deduct any liabilities: Subtract any debts you owe, such as mortgages, personal loans, and outstanding business expenses.

Set aside any exempt items: Exclude personal belongings, tools of your trade, and your primary residence from the calculation.

Nisab threshold: Once you have your total net eligible wealth, compare it to the Nisab threshold, which is currently equivalent to the value of 87.48 grams (3 ounces) of gold.

zakat calculation detail

What is the value of Zakat

It doesn’t have a fixed value: It is not a pre-determined or fixed amount. Instead, it’s a percentage applied to the excess wealth (above a specific threshold) that a Muslim individual possesses. This percentage is a standard 2.5% of the eligible assets.

Nisab Threshold, Not a Fixed Value:  The value of Zakat, being equivalent to 7.5 tolas (approximately 87.45 grams) of gold or 52.5 tolas (approximately 611.55 grams) of silver, refers to the Nisab threshold. This threshold defines the minimum amount of wealth a Muslim must possess before it becomes obligatory.

Zakat obligatory items and its rate

Gold: It is important whether the gold is kept as a saving or in use. In both cases, it is obligatory (Sunan Abi Dawud, Kitab al-Zakat wa Hakim, Part 1, page 390, Fateh al-Bari, Part 4, page 13).

Silver: Zakat shall be paid on silver when it is of a weight equal to fifty-two and a-half tolas (Ibn Majah 612).

Zakat on the produce of land: On artificially irrigated land, one-twentieth must be paid, while on naturally irrigated land, the rate of it is one-tenth (Bukhari’s Kitab al-Zakah). People with agricultural production, wheat, corn, rice, millet. Millet. Ushar, which is the twentieth part will be taken from potatoes, sunflowers, cotton, sugarcane, etc.

Details of Zakat on animals. Regarding animals, it is important to know that if the following animals are Saimaa, then Zakat is obligatory on them. Saimah are the animals that spend most of the year grazing; the purpose is to increase their breed, hobby, or fattening, but if the purpose is to carry loads, ride, or plow, then even if the animal grazes, it is not obligatory to pay.

  • The camel
  • One goat for every five camels and two goats for ten camels. It is not obligatory on less than five camels.
  • Buffalo and cow
  • One goat is Zakat on thirty cows and one calf older than two years is on forty cows. (Tirmidhi 1/509). The rate of Zakat on cows will also be applicable on buffaloes.
  • From 40 to 120 goats, one goat is Zakat. Two goats from 121 to 200; three goats from 201 to 300; four from 301 to 400 and then one for every hundred. If the number of grazing goats is less than 40, it is not obligatory on them.

Pic of Sheep and Goats

Zakat on rented house

There is no zakat on a rented house, but if it has been a year since the rent has been collected and the amount exceeds the nisab, then it becomes obligatory at the rate of two and a half percent. If the money is spent before the end of the year, amount will not be due.

zakat on houses

Zakat on vehicles

There is no zakat on rented vehicles, but if the accumulated rent is over a period of one year and the amount reaches the nisab, then it is obligatory. The rate will be two and a half percent. It is worth noting that it is not obligatory on household vehicles, animals, and weapons.

car-comparison

Zakat on Merchandise

Purification of wealth is obligatory in any kind of shop, business, or business, provided that a year has passed on it and it has reached the Nisab. What is noteworthy about this is that after accounting for all the assets of the shop or business, give Zakat on the fortieth part of it. It is not applicable to the income of the shop which is spent at the same time.

Factories pic

zakat on agricultural land

It is not directly payable on the land itself; it applies to the agricultural produce generated from it. Here’s a breakdown:

  • Nisab: A minimum threshold is required before said amount becomes obligatory. For crops, it’s typically five Wasqs (approximately 900 kg).
  • Irrigation: The Zakat rate depends on the irrigation method:
    • Rain-fed or naturally irrigated: 10% of the harvest’s gross value.
    • Man-made irrigation (wells, canals): 5% of the harvest’s net value (after deducting expenses).
  • Timing: It is due when the harvest is complete and separated from the land.
zakat on wheat

Plot or area of land

The concept of 3rd pillar paying amount and its application to land ownership can be nuanced, and the distinction between land for investment/profit and land for personal use is crucial.

Land for Investment/Profit:

  • If you own land with the intention of selling it for profit at a future date, this land is considered eligible.
  • It applies to the estimated market value of the land at the time of your Zakat assessment.
  • You are not required to pay it on the initial purchase price of the land, but only on its current value.

Land for Personal Use:

  • Land that you own and use for personal purposes (e.g., your primary residence; agricultural land you cultivate yourself) is exempted.
  • This exemption applies because the land is not intended to generate profit and is directly used for your personal needs and well-being.
Plots pic

BENEFITS OF ZAKAT

Spiritual growth: Fulfilling the obligatory act of third pillar of islam is seen as a way to purify one’s wealth and soul, bringing them closer to God.

Increased blessings: Many Muslims believe that giving the said donation can bring blessings and rewards in this life and the hereafter.

Selfless act: It encourages individuals to think beyond themselves and their immediate needs, fostering compassion and generosity.

Reduced poverty and inequality: By redistributing wealth to those in need, it helps bridge the gap between the rich and the poor, contributing to a more equitable society.

Enhanced social cohesion: Zakat fosters a sense of community and responsibility, encouraging individuals to help each other and creating stronger social bonds.

Empowerment for the underprivileged: It provides individuals and families with resources to meet their basic needs and improve their lives, allowing them to contribute more effectively to society.

Economic development: This funds can be used to support various initiatives like education, healthcare, and infrastructure development, contributing to the overall economic growth of a community.

ZAKAT OR DONATIONS IN OTHER RELIGIONS

Judaism

Maaser: This term translates to “tithe” and refers to the practice of donating a tenth of one’s agricultural produce to charity. Additionally, there are other forms of charitable giving encouraged in Jewish tradition, like Tzedakah (righteous giving) and Bikkurim (firstfruits).

Christianity

Tithing: Similar to Maaser, tithing refers to the practice of donating 10% of one’s income to the church or other charitable causes. While not universally mandatory in all Christian denominations, tithing is still a prevalent practice and considered an important act of faith for many Christians.

Hinduism

Dana: The Sanskrit word “Dana” translates to “giving” and encompasses various forms of charitable acts, including:

  • Daana of wealth: Donating money, food, clothes, or other resources to those in need.
  • Daana of knowledge: Sharing knowledge, skills, and wisdom to help others learn and grow.
  • Daana of service: Volunteering your time and effort to serve others without expecting anything in return.

Disclaimer

The aim of writing is to highlight a generic concept of Sunni clergy (school of thought) regarding the goods/items which is subject matter of Zakat. It has nothing to do with any sectarian differences or opposition. These items may vary in number or ratio according to the school of thought one follows.

CONCLUSION

In conclusion, Zakat plays a vital role in the Islamic faith, representing the third pillar of Islam and emphasizing the importance of charity and community support. Understanding the different types of Zakat, such as Zakat fitrah and Zakat-e-mal, is essential for fulfilling one’s religious obligations. Many people wonder about the Zakat percentage required, which can vary based on individual circumstances.

Organizations like the Zakat foundation are crucial in helping individuals calculate and distribute their Zakat effectively. It’s important to note that Zakat on property, Zakat on gold, and Zakat on agricultural property all have specific guidelines that should be followed to ensure compliance with Islamic teachings. Additionally, exploring Zakat in other religions can provide valuable insights into the broader concept of charity and giving.

As we approach Zakat in 2024, it remains a powerful tool for social justice and poverty alleviation. By embracing these practices, individuals can contribute to their communities and fulfill their spiritual duties with sincerity and commitment.

If a person has fifty-two and a half tolas of silver or its equivalent, or seven and a half tolas of gold, or surplus goods equal to fifty-two and a half tolas of silver, or the sum of some of them is equal to fifty-two and a half tolas of silver, then he It is not permissible to give zakat and take zakat for it.

If the other brothers and sisters are deserving of zakat, then it is permissible to give zakat to them, but it is more rewarding; Because there is mercy in it.

For zakat to be obligatory, it is not enough to have goods or wealth in excess of the need, but there must be a name (increase) for the goods or goods in excess of the need, and by name means gold, silver, cash, trade goods and saimah ( Most of the year (self-grazing) animals, Zakat is obligatory on property also after the completion of the specified course and the passing of the year.

Therefore, if clothes or utensils etc. are not for trade, then their value will not be assessed for payment of Zakat. However, if a person (man or woman) has clothes or utensils etc. in excess of the need (which are not used even once in a year) and the value of these goods is equal to or more than fifty-two tolas of silver, then such a person But Sadaqah al-Fitr and Qurbani are required, and this person cannot receive Zakat

Zakat Foundation of India was established in 1997 as a grassroots level organization by concerned residents of New Delhi.

We are a Non-Governmental/Non-Profit Organization which collects and utilizes ‘zakat’ or charity for socially beneficial projects in a transparent and organized manner.

It is not permissible to buy cement and cement with Zakat money for the construction of mosques and madrassas, and by doing this, zakat will not be paid. If a deserving person is made the unconditional owner of the Zakat money, then after becoming the owner, he donates that money to the mosque, then it will be permissible to invest it in the construction of the mosque. will be received, while charity will continue for the poor person.

In order for Zakat and Sadaqat-i-Wajiba (for example: Nazr, Kaffarah, Fidya and Sadaqah Fitr) to be paid, it is necessary that it be given to a Muslim deserving of Zakat without compensation; Therefore, zakat money cannot be spent on the construction of mosques, etc., nor can zakat money be spent on the provision of funds, because there is no ownership in them. And the amount of Zakat cannot be used in the salaries of the staff of the mosque, therefore, the salary is in exchange for work. Can only be done

The word zakat is mentioned in the Quran 30 times, with 27 of them associated with prayers in the same verse. In one place, zakat is mentioned alongside the word “prayers” in the same sequence of verses: “those who humble themselves in their prayers” and “who are active indeed in zakat.”

Zakāt was made obligatory/compulsory in 2nd Hijri.

(1) It should be clear that the Shariah regarding the obligation of zakat has considered the property of each person, and it is necessary for every person to collect zakat from his nisab either himself or by someone else with his permission; Therefore, in the case of responsibility, whatever income accrues to the head of the household (elder brother), and the year passes on it, if the share of it belongs to the elder brother and it is equal to the nisab, then it is for the elder brother to pay his zakat.

He is responsible, and the share that belongs to other brothers and it is equal to the nisab, then it is necessary to pay the zakat on them himself, except if the elder brother, with his permission, also pays the zakat on his share along with his share. So it will be valid.

(2) The goods of trade (i.e. the goods to be sold) kept in the shop, for example: flour, sugar, pulses, rice, etc., if it reaches the amount of nisab and a year has passed on it, or is mixed with other Zakat property. If the tax is as much as the nisab, then after finding out its total value, zakat will be paid from two and a half percent of it, except for the goods that are not kept for the purpose of selling in the shop, for example: a refrigerator for storing goods, or a cupboard, a table, etc., or Wealth is not a trade, but a trade tool, for example, milk measuring boats, etc., so Zakat will not be due on them.

(3) If a brother working in a government job accumulates in his personal property the amount of Zakat wealth or its equivalent, and a year has passed, he shall pay two and a half percent of it as Zakat. Also, see the details of the method of withdrawing Zakat in Clause No. (8) of the answer.

(4) The buffaloes that have been sold will be subject to zakat like other commercial property, and the buffaloes that have not been bought for the purpose of sale, but have been kept for the purpose of washing the milk and selling it, then there is no zakat on these buffaloes for their milk. If the income is collected, if it is equal to the nisab by itself or equal to the nisab with other things, then zakat will be paid on it like other cash.

(6) and (7) There is no Zakat on household goods, clothes, beds, refrigerators, ACs, etc., etc. (other than gold and silver) purchased for personal use, cars, watches, etc., even though They have been lying around for years, and are rarely used.

(8) Zakat is obligatory on a person who owns more than the required amount of property, the amount of the nisab, without any debt and for which one year has passed in terms of lunar months.

And the detail of the zakat is that if one has only gold, then seven and a half tolas of gold, and if one has only silver, then fifty two and a half tolas of silver, and if one has cash or merchandise equal to the value of either of them, or If all these are combined or some of them are combined, the total value is equal to the nisab of silver (fifty two and a half tolas of silver), then two and a half percent (i.e. fortieth part) of the zakat eligible property must be paid on such a person at the end of the year.

And the easiest way to find it is to divide the total value by 40; the answer will be the obligatory amount of Zakat; that is, for example, if someone has Rs. It is the fortieth part of two lakhs, i.e. two and a half percent.

If you have an amount of money left over from your salary that is equal to the amount of Nisab (equivalent to the value of fifty-two and a half tolas of silver) and a year has passed on it, then Zakat will be obligatory on it.

Similarly, if the amount that survives (alone) is not equal to the value of fifty-two and a half tolas of silver, however more money is in your possession, or gold or silver is present, or merchandise is present, and these. If the total value of all things is equal to fifty-two and a half tolas of silver, then you will have to pay Zakat annually.

And if this amount is not enough, then Zakat is not obligatory.

It is not permissible to pay salary as zakat, nor will zakat be paid by paying salary in this way, even if the employee is entitled to zakat.

However, the employees who are entitled to zakat can be given zakat with the explicit statement that this amount is in addition to the salary as a contribution, even if the salary is also paid separately or it is explained that the salary will be paid later. It is not necessary to express the zakat while giving the remaining zakat, rather it can be given by saying cooperation or gift etc. However, it is necessary to have the intention of zakat in the heart of the giver of zakat.

It should also be remembered that employees who are not entitled to zakat, it will not be permissible to give them in the name of contribution or gift in the form of zakat.

By admin

49 thoughts on “Zakat 3rd Pillar of Islam: Transforming of Your Wealth into Blessings”
  1. MASHAALLAH very informative and beautifully written May Allaah grant you the reward for spreading awareness to others
    Stay happy Keep writing like this and become a source of awareness to others. .

  2. Zakat serves to remind Muslims of their dependence on Allah and the temporary nature of worldly possessions, encouraging humility and gratitude.

  3. A great insight on Zakat, Most importantly its eligibility,It’s obligations,Categorisation,the rightfuls to be given.
    A comprehensive article on Zakat.👏

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