Friday, 01 December 2023 | 02:09 AM
"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.
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:
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.
Zakat is an obligatory charitable donation eligible for all Muslims who are:
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.
As per Allah’s order, Zakat is obligatory on four types of wealth. These are:
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:
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:
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.
Zakat is obligatory on all grains and fruits grown on the land. The nisab is as follows:
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.
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:
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.
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:
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.
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.
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:
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.
The Prophet (PBUH) said:
“Do not withhold your money, (for if you did so) Allah would with-hold His blessings from you” (Sahih Bukhari: 1433)
In another hadith, with respect to the importance of Zakat, Abu Hurairah (RA) narrated:
Allah's Apostle 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.” (Sahih Bukhari: 1403)
Zakat is one of the Pillar of Islam and a way to purify your wealth for the will of Allah (SWT). It is payable on assets owned over one lunar year. It is calculated as 2.5% of the total wealth.
The collected amount is paid first to zakat collectors, and then to poor Muslims, to new converts to Islam, to Islamic clergy, and others.
To start calculating your zakat this year, click on the button below.
Every Muslim is bound to pay zakat annually. The amount of money you give will be based on your accumulated wealth over the hijri year.
The shortest answer is yes. However, calculating business zakat can contain a lot of complexities, such as business expenses, inventory, and debts. It is best to consult with scholars or experts to ensure accurate calculations.
Yes, your zakat calculation is considered confidential between you and Allah (سُبْحَانَهُ وَتَعَالَى). There is no obligation to disclose the exact amount of your zakat to others.
Yes, zakat is payable on the gold you wear.
Personal residences, regardless of their value, are not counted as part of zakat calculations.
Unsettled loans are deducted from your assets when calculating zakat. If you owe money to others, it diminishes the overall value of your wealth, potentially affecting your zakat obligation.
Zakat is not accumulated on income or your monthly wage. It's the value of assets you've had for a year that determines your zakat obligation.
Yes, you can choose to pay your calculated zakat every month.
Certain categories of people, such as wealthy individuals whose wealth exceeds the nisab threshold, are not eligible to receive zakat. Additionally, close relatives and dependents are generally not eligible to receive zakat from you.
Zakat recipients generally include the needy, those who are working to establish themselves, those in debt, those who are engaged in the distribution and collection of zakat, and travelers.
Zakat is not directly calculated on income. Instead, it's based on accumulated wealth over a lunar year. Income taxes are not a direct factor in zakat's calculations.
No, it is not necessary to disclose the amount of zakat you give to those in need. On the other hand, sharing your purpose behind giving zakat can encourage others to fulfil their charitable obligations and foster a beautiful culture of giving.