“All they were commanded to was: worship Allah sincerely, turn away from false gods, establish prayer and pay the Zakat”
Karimia Institute is engaged in teaching the inspiring message of Islam and preparing the future leadership of Muslims in Britain. Please support our work and donate your Zakah to us. Giving Zakah purifies your wealth and refines your character.
WHAT IS ZAKAT?
Zakat is one of the major religious duties in Islam. Literally, zakat means to “purify”. It refers to the purification of a believers’ wealth and soul. Wealth purification denotes the mobilisation of assets for the purpose of financial growth and justified distribution. The Messenger ﷺ said, “Zakat is a proof”; proof of one’s faith in Allah, in the messenger and the hereafter. The hadith literature vividly describes the virtues of Zakat. It extols its benefits and motivates people to carry out this duty. Here are a few beautiful gems from the messenger ﷺ:
Abdullah ibn Umar reported, the Prophet ﷺ said, “Islam is built on five pillars! Bearing witness that there is no god but Allah, establishing regular worship, paying Zakat, pilgrimage and fasting in Ramadan” (agreed upon).
Abu Ayyub Al-Ansari said “A man asked the Messenger ﷺ “tell me a deed that will take me into paradise,” he ﷺ said “worship God alone without associating anyone with him, established the prayer and pay Zakat and always be kind to your relatives” (agreed upon).
The Prophet ﷺ sent Muadh to Yemen and said, “Invite the people to testify that none has the right to be worshipped but Allah and I am Allah’s Messenger ﷺ, and if they obey you, then teach them that Allah has enjoined on them five prayers, then teach them that Allah has made it obligatory for them to pay the Zakat from their property and it is to be taken from the wealthy among them and given to the poor.”
Yes, if you are free from debt and have wealth that is more than the Zakat-payable amount (Nisab), and have been in possession of the Nisab for a full lunar Year. Zakat can be paid in advance, i.e. for two years, the last year and the next.
The Nisab is 87.5 grams of gold, the current value of this is £2751.42 (July 2019), what this means is that when you have 87.5 grams of gold or more or an equivalent amount of money (£2751.42), Zakat becomes compulsory on you, hence you will pay 2.5% of this amount.
There is no Zakat on platinum, diamonds, pearls and precious stones. However, if they are for business, then in that case, they must be valued and Zakat must be paid, at the rate of 2.5%. However, Zakat is due on all gold or silver jewellery that is for personal use and adornment.
If you buy and sell shares to make profit that is capital gain, then zakah will have to be paid on the market value of the shares. If shares are bought with the intention of receiving dividend then zakah is payable both on market value of shares and the dividend.
Property bought for the purpose of renting out but not for reselling, zakah is only due on the annual income from the rent minus all the overheads. However, if the property is bought with the intention of reselling at a profit then zakah would be payable on the value of the property.
Allah Almighty says “Zakat is only for the poor, the needy, those who administer it, those whose hearts need winning over, to free slaves and help those in debts, for God’s cause, and travellers in need. This is ordained by Allah; Allah is all knowing and wise” (Tawbah: 60).
Zakat can be paid to all the eight categories, or to any one of them, however, it is best to give an amount that will help the recipient to meet their needs and to take them out of their poverty. It is not permissible to pay Zakat to a non-Muslim, wealthy person who has Nisab, a wealthy child, and members of the Bani Hashim (family of the blessed Messenger ﷺ, nor is it correct to pay Zakat to one’s parents or children or wife. Zakat can be paid to all other relatives, in fact, it is more virtuous to pay them than other people. The closer the relatives the more deserving they become, then one’s neighbours and then people from the locality and then the city.
Imam Ghazzali gives the following advice:
Pay Zakat quietly in secret; don’t make a show of it. The Messenger ﷺ praised such people when he said: “God will give shade under his throne to seven groups of people, one of them will be the people who gave charity so secretly that the left hand did not know what the right-hand had given.”
It is better to give Zakat openly when it is going to motivate and spur others to give as well. Allah says “Give what we have given you openly and secretly.”