"The example of those who spend their wealth in the way of Allah (سُبْحَانَهُ وَتَعَالَى)‎ is like a seed which grows seven spikes; in each spike is a hundred grains. And Allah (سُبْحَانَهُ وَتَعَالَى)‎ multiplies His reward for whom He wills. Allah is All-Encompassing, All-Knowing." - Al Baqarah 2:261

 

The aforementioned translation of a verse from Surah Baqarah emphasizes the importance of giving Zakat (charity) and its bountiful rewards. Additionally, the analogy of a "seed growing' reflects the idea that when you give Zakat, your resources multiply, and you gain spiritual and religious growth.

What is Zakat?

The word Zakat comes from the Arabic word "Zakah," which translates to "cleanliness, righteousness, increase, growth, praise, and blessing." Zakat is the third pillar of Islam. It purifies the soul and wealth of Muslims and saves them from the sin of miserliness and the love of material things.
 

Allah (سُبْحَانَهُ وَتَعَالَى)‎ said in Surah Tawba, “Take from their wealth ˹O Prophet˺ charity to purify and bless them, and pray for them—surely your prayer is a source of comfort for them. And Allah is All-Hearing, All-Knowing.” - At-Tawbah - 103

When a Muslim's earnings exceed their necessities by a certain amount (referred to as "Nisab"), they are required to give a portion of their wealth and profits to the impoverished and needy once every lunar year (Hijra).
 

Zakat has three main advantages and constructive effects on society. These are:
 

• Zakat purifies our earnings and adds barakah.
• Zakat ensures the circulation of money in a society, and hence it can strengthen a country's economy.
• Zakat develops a sense of financial responsibility, compassion, and empathy towards those who are less fortunate financially.

 

It is a blessing from Allah (سُبْحَانَهُ وَتَعَالَى)‎ for both the giver and the recipient. It creates a society based on humanitarian principles, alleviates poverty for the poor, and lessens disparity between various societal groups. Moreover, it fosters fraternity and love and reduces social tensions between the rich and the poor.

If everyone in the world today adhered to the Zakat principle, all financial issues and poverty would end, which would lessen crime and social unrest. Imagine if the top 10 richest people in the world paid 2.5% zakat on their wealth each year. It would resolve financial disparities and make the world a more equitable place.
 

Who is Eligible to Pay Zakat?

Zakat is an obligatory charitable donation eligible for all Muslims who are:
 

• Adults (attained the age of puberty)
• Sane
• Have complete ownership of/meet the threshold of Nisab

Three schools of thought, i.e., the Hanbali, Maliki, and Shafi'i, state that Zakat should also be paid by children, orphans, and the insane if they own qualifying wealth. These schools believe that "ownership of wealth reaching the Nisab" is the main driving factor behind Zakat. However, the Hanafi school of thought gives more weightage to the worship element in Zakat and therefore states that Zakat is not mandatory for orphans, children, and the insane. The parents/guardians of these individuals will be responsible for paying Zakat from their wealth on their behalf. Moreover, if an individual experiences intermittent sanity, they will still be required to pay Zakat; only continuous insanity and mental incapacity exempt an individual from Zakat.

 

Assets that are Subject to Zakat Obligation
 

As per Allah’s order, Zakat is obligatory on four types of wealth. These are:
 

1. Valuables  

Zakat is obligated on valuables, i.e., gold, silver, money (paper or otherwise). Zakat is fard when an individual's wealth is as much as the nisab for Zakat, i.e., the minimum amount of wealth they must have to become eligible to pay Zakat. The nisab for Zakat is:
 

• 20 Mithqals or 87.48 grams (7.5 tola) for gold
• 200 Dirham or 612.36 grams (52.5 tola) of silver
• Money equal to or more than the value of the above two valuables

The nisab for paper money must be calculated every year as the value of money fluctuates. Zakat on jewelry is obligatory under the following conditions:
 

• It is intended for saving
• It is intended as an investment
• It is prohibited Jewellery, i.e., gold for men or jewelry with faces on it for women
   

2. Grazing Livestock

Zakat is obligatory on livestock and cattle if they are intended for milking and offsprings (not personal use, but as a trade) and if they have been grazing on the land of the owners for more than 1 year. The nisab of livestock is different for camels, sheep, and cattle.
 

3. Grains and Fruits

Zakat is obligatory on all grains and fruits grown on the land. The nisab is as follows:
 

• Grain and fruit are equal to 300 prophetic sa's or 642 kilograms.
• Zakat is applicable if one type of fruit is 642 kilograms or more in one year. It is not obligatory if an assortment of fruits makes up that amount. However, types of the same fruit are still considered as one fruit. For example, different types of dates.
   

4. Trade Offers

Zakat is obligatory on trade offers if they are intact for more than 1 year. After a person has had a trade offer(s) for more than 1 year, and it meets the nisab of 2.5%, Zakat is applicable.
 

Who Qualifies for Zakat?

Zakat is not a type of sadaqah. Sadaqah is a voluntary charity, while Zakat is a fard. Therefore, Zakat must be given to those who qualify to receive it in the eyes of Allah.

 

Allah states in Surah Tawbah:
 

إِنَّمَا الصَّدَقَاتُ لِلْفُقَرَاءِ وَالْمَسَاكِينِ وَالْعَامِلِينَ عَلَيْهَا وَالْمُؤَلَّفَةِ قُلُوبُهُمْ وَفِي الرِّقَابِ وَالْغَارِمِينَ وَفِي سَبِيلِ اللَّهِ وَابْنِ السَّبِيلِ ۖ فَرِيضَةً مِنَ اللَّهِ ۗ وَاللَّهُ عَلِيمٌ حَكِيمٌ

“The alms are meant only for the poor and the needy and those who are in charge thereof, those whose hearts are to be reconciled, and to free those in bondage, and to help those burdened with debt, and for expenditure in the Way of Allah and for the wayfarer. This is an obligation from Allah. Allah is All-Knowing, All-Wise.” At-Tawbah - 60

 

If someone is qualified to receive Zakat, they must meet eight requirements. Thus classifying the Zakat recipients into eight groups of individuals. As stated by Allah in the Qur'an, these comprise:
 

1. The fuqara'- People who have less than half of the sufficiency, i.e., the money or means required to pay for the necessities of life, like basic food and shelter. 
2. The masakeen - People who have half the sufficiency to sustain themselves and their dependents.
3. The amilun 'alayha - The workers who are appointed by the state or ulema collect Zakat and disburse it.
4. The mu'allafa qulubhum - People who have weak faith strengthen their faith and bring them back towards the deen.
5. The riqab - To set free those in slavery
6. The gharimun - People who are in debt given that the debt has not been incurred in something haram.
7. Allah’s path - To those who go on expeditions on Allah’s path. To preach, to war, etc.
8. Ibn al-sabeel - Travellers who are traveling towards their land and don't have enough money to reach it.

On the other hand, Zakat cannot be given to a member of your nuclear family. For example, if you follow the Hanafi and Hanbali fiqhs, your spouse, kids, or parents are not eligible for your Zakat. However, you are permitted to donate Zakat to close family members under the  Maliki and Shafi fiqhs. This is provided that you are not accountable for their upkeep.

 

How is Zakat Calculated?

In the past, people used to calculate Zakat based on a specific formula. The formula involves considering various types of assets, including investments, Zakat on gold, silver, and other valuables. Here’s an overview:
 

• Cash and Savings: The total amount of money you have in your possession, including cash, bank balances, and other liquid assets.
• Gold and Silver: The value of gold and silver you own, whether in the form of jewelry, coins, or bars.
• Business Assets: If you own a business, the value of business inventory, equipment, and capital is considered.
• Investments: The value of investments such as stocks, bonds, and other financial instruments.
• Agricultural Produce: For those engaged in agriculture, the value of the produce is calculated.

The Zakat calculation formula for most of these assets is 2.5%. This means that 2.5% of the total value of the above-mentioned assets should be given as Zakat each year.
 

Calculating Zakat Online

Online Zakat calculators have made it very easy to determine your nisab and Zakat. Through an online Zakat Calculator, you can effortlessly determine the zakat percentage you owe in a given year. However, remember that while online Zakat calculators can be very helpful, they might not cover every unique financial circumstance. If you have complex financial arrangements or specific questions, consider consulting a knowledgeable religious scholar or financial advisor for additional guidance.
 

How to Calculate Zakat through the Muslim and Quran Online Zakat Calculator?

The Zakat calculator introduced by Muslims and Quran is one of the best out there. Its design reflects a thorough understanding of every user's needs and represents a crystal-clear layout where users can effortlessly input their financial information and get the results they need. Moreover, its intuitive interface guides users through several asset categories, ensuring nothing is left out in the calculation process.

Here is a step-by-step guide on how you can calculate Zakat through Muslim and Quran:
 

1. Start by entering your name and the current Hijri (lunar) year, as well as any personal information. This aids the calculator in customizing the computation for your situation.
2. You can navigate the calculator through many asset categories, including cash, savings, investments, gold, silver, and company holdings. As needed, enter the correct value for each category.
3. The calculator could ask you to deduct your total assets from your outstanding debts if you have any. This procedure assists with calculating your net Zakatable wealth.
4. After you've entered all of your financial data, click "Calculate" or another comparable item on the screen. Your estimated Zakat amount will be produced by the calculator when it has processed the input.
5. The determined Zakat amount will be shown on the screen by the calculator. It might also provide further information or split down the sum by type of asset.
    

Compatibility with Different Devices
 

The Muslim & Quran Zakat Calculator can be used across all devices. It has been designed for modern user needs and can seamlessly adapt to different platforms, including tablets, computers, and smartphones. Whether you're on the go or at home, the interface remains user-friendly and navigable, maintaining its intuitive layout and functionality.