There are many major benefits of giving Zakaah

1. It reminds Muslims of the fact that whatever wealth they may possess is due to the blessings of Allah and as such it is to be spent according to His Commands.
2. Zakaah functions as a social security for all. Those who have enough money today pay for what they have. If they need money tomorrow they will get what is necessary to help them live decently.
3. The Zakaah payer pays his dues to Allah as an act of worship, a tof submission and an acknowledgment of gratitude. The receiver of Zakaah receives it as a grant from Allah out of His bounty, a favour for which he is thankful to Allah.
4. Economically, Zakaah is the best check against hoarding. Those who do not invest their wealth but prefer to save or hoard it would see their wealth dwindling year after year at the rate of the payable Zakaah. This helps increase production and stimulates supply because it is a redistribution of income that enhances the demand by putting more real purchasing power in the hands of poor.

Zakaah is obligatory upon a person if

1. He or she is an adult, sane, free and Muslim.
2. He/she must possess wealth in excess of specified minimum (Nisaab) excluding his or her personal needs (clothing, household furniture, utensils, cars etc. are termed article of personal needs).
3. It should be possessed for a complete lunar year.
4. It should be of productive nature from which one can derive profit or benefit such as merchandise for business, gold, silver, livestock etc.

The amount of wealth, which makes one liable for Zakaah, is called Nisaab. The Nisaab as fixed by Rasulullah (sallal laahu alaihi wasallam) is as follows:

1. Gold: 87.48 (grams) or 7.5 Tolas
2. Silver: 612.36 (grams) or 52.5 Tolas
3. Nisaab of cash, stock or bonds, other cash assets is the equivalent amount of Gold or Silver.
4. Nisaab is calculated by adding up the cash value of all the assets such as gold, silver, currency, etc. and if it is equal to or in excess of the minimum Nisaab as specified in the above table, the Zakaah is due at the rate of 2.5%.
5. The payment of Zakast is compulsory on the excess wealth or effects which is equal to or exceeds the value of Nisaab, and which is possessed for a full Islamic year. If such wealth decreases during the course of the year and increases again to the value of Nisaab before the end of the year, the Zakaah then must be calculated on the full amount that is possessed at the end of the year.

TYPES OF WEALTH ON WHICH ZAKAAH ARE IMPOSED

1. Gold and silver, in any form
2. Cash, bank notes, stocks, bonds etc.
3. Merchandise for business, equal to the value of Nisaab
4. Livestock
5. On income derived from rental business

CALCULATION OF ZAKAAH

1. To calculate Zakaah on jewelry, etc. one must first determine the gold or silver content and then calculate the Zakaah according to current market price.
2. If the Gold possessed is less than 87.48 grams or if silver possessed is less then 612.36 grams, but the value of both combined is equal to or exceeds the Nisaab of either Gold or Silver, the Zakaah will be due.
3. In the event of an article not being of pure gold or pure silver, but containing a mixture of other metals and the gold or silver content is more than the other metal, it will be regarded as gold or silver and Zakaah will be due. But in the case where other metal/s is of greater quantity than either gold or silver, Zakaah will not be due on this article.
4. For stocks (shares held in a company), Zakaah is calculated based upon the current market value. As machinery, land, fixtures and fittings, furniture, buildings etc. are exempt from Zakaah, one is allowed to subtract these from the total asset. This could be obtained from annual reports. For example, if one has shares worth R1000 and machinery, land etc., are worth 5% of the total asset, then deduct R50 for these assets, afterwards deduct the liabilities of the company proportionately to the percentage of shares held. Zakaah must be calculated on the balance.

DISTRIBUTION OF ZAKAAH

1. Zakaah should be given as soon as possible after it becomes due.
2. All of the Zakaah can be given to one person or to several persons.
3. A poor man cannot be paid for his work from Zakaah nor can Zakaah be given in payment of services, except to the people appointed by the Islamic government to collect Zakaah.
4. Zakaah will only be valid if the recipient is made the owner of that amount. If, for example, a few needy persons are fed a meal from Zakaah money, then Zakaah will not be fulfilled as they were not made owners of the food.
5. Zakaah cannot be given for the construction of Masjid, Madrasah, Hospital, a well, a bridge or any other public amenity.
6. Zakaah can be paid in kind from the same merchandise on which it is due, or alternatively, it could be paid in cash.

TYPES OF WEALTH ON WHICH ZAKAAH ARE NOT IMPOSED

1. On any metals other than gold or silver.
2. Fixtures and fittings of a shop, car, trucks or any delivery vehicle etc., which is used in running business.
3. Diamonds, pearls, other precious or semi-precious stones, which are for personal use.
4. There is no Zakaah on personal residence, household furniture, pots and pan, personal clothing, whether they are in use or not.
5. There is no Zakaah on a person whose liabilities exceeds or equals his assets. Some Mortgage in this country is not to be counted as personal liability for the Zakaah purpose.

RECIPIENTS OF ZAKAAH

The recipients of Zakaah, according to Qur’an are as follows: “Alms are for the poor and the needy, and those employed to administer (the funds); for those whose hearts have been (recently) reconciled (to truth); for those in bondage and in debt; and for the wayfarer: (Thus is it) ordained by Allah, and Allah is full of Knowledge and Wisdom.” (Qur’an 9:60)

1. FUQARA: people who are poor and who possess more than their basic needs but do not possess wealth equal to Nisaab.
2. MASAKEEN: people who are destitute and extremely needy to the extent they are forced to beg for their daily food rations.
3. AL-AMILEEN: people appointed by an Islamic Government to collect Zakaah.
4. MU-ALLAFATU-QULUB: persons who have recently accepted Islam and are in need of basic necessities who would benefit from encouragement by Muslims which would help strengthen their faith.
5. AR-RIQAAB: slaves who are permitted to work for remuneration and have an agreement from their masters to purchase their freedom on payment of fixed amounts.
6. AL-GHAARIMEEN: persons who have a debt and do not possess any other wealth or goods with which they could repay that which they owe. It is conditional that this debt was not created for any un-Islamic purpose.
7. FI-SABILILLAH: persons who have to carry out an obligatory deed which has become obligatory on them and subsequently (due to loss of wealth) are unable to complete that obligation.
8. IBN-US-SABEEL: persons who are travelers and during the course of their journey do not possess basic necessities, though they are well to do at home. They could be given Zakaah in order to fulfill travel needs to return home.

PERSONS WHO CANNOT BE GIVEN ZAKAAH

1. Zakaah cannot be given to the descendants of Rasulullah (sallal laahu alaihi wasallam);
2. Zakaah cannot be given to parents and grandparents. In the same manner one’s children and grandchildren cannot be given Zakaah.
3. A husband and wife cannot give Zakaah to each other.
4. Zakaah contributions cannot be given to such institutions or organizations who do not give the rightful recipients possession of Zakaah, but instead use Zakaah funds for constructions, investment or salaries.

THE PUNISHMENT FOR NOT GIVING ZAKAAH

Allah(Azzawajal) says in the Qur’an: “And there are those who hoard gold and silver and do not spend it in the way of Allah, announce to them a most grievous penalty (when) on the Day of Judgment heat will be produced out of that wealth in the fire of Hell. Then with it they will be branded on their forehead and their flanks and backs. (It will be said to them) This is the treasure which you hoarded for yourselves, taste then the treasure that you have been hoarding.”

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