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What Is Zakah, Benefits, And Punishment For Not Paying Zakah

What Is Zakah?
Zakah is an obligatory form of “charity” expected from every Muslim individual. Zakat can be defined as that portion of a man’s wealth that is designated for the poor. The term is derived from the Arabic verbal root meaning to increase, to purify, and to bless. “Take Sadaqah from their property in order to purify and sanctify them” (Al-Quran 9:103)

It refers to the purification of a Muslim’s wealth and soul. To “purify” is to purify them from the faults of stinginess, greed and meanness, and lack of remorse towards the needy, and other similar depravities.

“Zakat is for the poor, and the needy, and those who are employed to administer and collect it, and the new converts, and for those who are in bondage, and in debt and service of the cause of Allah, and for the wayfarers, a duty ordained by Allah, and Allah is the All-Knowing, the Wise”. At Taubah 9: 60

Benefits Of Zakah
Zakat is for the welfare of the unprivileged and establishes a society on humanitarian grounds. Zakat also purifies the heart of the recipient from jealousy and hatred toward those who are wealthy in the material sense. Zakat also purifies his heart from selfishness and greed for wealth and is an essential element in attaining mutual love, cooperation, and solidarity among members of Moslem society.

The Messenger of Allah (saws) said: “He who discharges Zakah of his property, his sins shall leave him.”

“The parable of those who spend their substance in the way of Allah is that of a grain of corn; it grows seven ears and each ear has a hundred grain. Allah gives manifold increase to whom he pleases.” (2:26)

In the above verse 2:26, Allah has promised that He will repay hundredfold in the hereafter what a believer spent in the way of Allah.

The Nisaab (Minimum ‘Zakatable’ Income)
The Nisaab is defined as the minimum wealth that one must hold for one year, at the end of which Zakat is payable. The Nisaab of gold is three ounces or about 85 grams of pure gold and of silver is 596 grams of pure silver. All Muslims (minor or adult) with a set minimum level of income and assets are expected to pay Zakat of at least 2.5%.

Types Of Zakah

1. Zakah On Business (URAD AL TIJARAH)
In this context, business refers to any form of trading activity that generates income (i.e. Buying and selling, for the sake of profit e.g. foodstuffs, furniture, animals, land, etc). Anyone who owns a business with a minimum working capital (Stock and Cash) must pay Zakat.

Formula: 2.5% x [(Current Assets – Current Liabilities)

2. Zakah On Rental Income
Formula: 2.5% x [Total Annual Rental Revenue – Rental Expenses]

3. Zakah On Agricultural Produce
Zakah On Agriculture Is Due Upon Each Harvest If It Is Equal To 2 Wasq (A Measure That’s Equal To 653 Kg).

Zakat is payable on all agricultural produce including fruits, commercially grown flowers, vegetables, and all types of grains at the time of harvest itself. The Zakat levy on agricultural produce varies according to the way the land is irrigated.

a) The Zakat is 10% of the land produce if the land is irrigated by streams, rivers (running water), or rainfall (without human effort).
b) The Zakat is 5% of the land produce if the land is irrigated by wells (or by artificial canal systems, tank water, or bore well and open well) There is no deduction out of this on any account.
c) For crops dependent partly on rainwater and partly on other water (Irrigation), the Zakat applicable would be 7.5% of produce.

4. Zakah On Personal Income (e.g. Salary)
In this context, personal income refers to the salary/wages, commissions, allowances, bonuses, and monetary gifts earned by a zakah payer through permissible (halal) activities.

Zakat is payable When the total annual salary (i.e. salary per month multiplied by 12 months) earned by an individual is equal to or greater than the price of 596 grams of pure silver.
Formula: 2.5% x [Total Salary for the Year + Any Other Income/allowances]

Narrated ‘Abdullah: The Prophet said, “Who among you considers the wealth of his heirs dearer to him than his own wealth?” They replied, “O Allah’s Apostle! There is none among us but loves his own wealth more.” The Prophet said, “So his wealth is whatever he spends (in Allah’s Cause) during his life (on good deeds) while the wealth of his heirs is whatever he leaves after his death.”

5. Zakah On Animals:

Goats and Sheep
Up to 39 Goats/Sheep=No Zakat
From 40 to 120 Goats/Sheep=1 goat
From 121 to 200 Goats/Sheep=2 goats
From 201 to 300 Goats/Sheep=3 goats
Thereafter 300 on 1 goat for every 100 Goats/Sheep

Cows and Oxen
Up to 29 cows= No Zakat
From 30 to 39 cows=1 one-year-old male or female calf.
From 40 to 59 cows =1 two-year-old male or female
From 60 to 69 cows =2 one-year-old male or female
From 70 to 79 cows =1 one-year-old and 1 two-year-old male or female
From 80 to 89 cows =2 two-year-old male or female
From 90 to 99 cows =3 one-year-old male or female
From 100 to 109 cows =1 two-year-old male or female
From 110 to 119 cows =2 two-year and 1 one-year-old male or female
From 120 to 129 cows =3 two-year-old or 4 one-year-old male or female
Thereafter 130 on 1 one-year-old for each 30 or 1 two-year-old for each 40.

Please Note:
· The person who owns different types of wealth e.g. animals, commercial goods and gold and silver must give Zakat on each category of wealth separately.

· Zakat must be given in kind, that is, if one’s wealth is in cattle, one must pay in cattle rather than their equivalent in money;

· Items of everyday use that are not meant for trade, such as household utensils, clothes; tools and machinery used for further production or business operation, and animals used in agriculture are not Zakatable

Where Should One Pay His Zakah?
Zakat can be paid at the mosque near you so the mosque committee or the Imaam can distribute it to the poor and needy that are entitled to get it. You can also give it to any Reputable Muslim Charitable Organization of your choice.

Please Also Note: A Muslim’s primary responsibility is to pay the Zakat, not to supervise how it is spent. Refusal to pay the Zakat for fear of it being misappropriated is punishable by Allah as indicated below.

Punishment For Those Who Refuses To Pay Zakah
Allah (The Glorified and the Exalted) has strongly warned those who are negligent in the fulfillment of these duties. Thus He said, “Those who hoard up treasures of gold and silver and spend them not in the way of Allah; give them the news of a painful punishment, on the Day when that (wealth) will be heated in the Fire of Hell and with it will be branded their forehead, their sides, and their backs, (and it will be said to them:) ‘This is the treasure which you hoarded for yourselves. Now taste of what you used to hoard.'” [Al-Quran 9:34-35]

‘Let not those who are miserly with what God has given them of His bounty think that this is good for them. Rather, it is bad for them. That which they withhold shall be hung around their necks on the Day of Arising.’ [Al-Quran 3:180]

Further, At-Tabarani relates, on the authority of ‘Ali, that the Prophet (PBUH) said: “Allah has enjoined upon rich Muslims a due to be taken from their properties corresponding to the needs of the poor among them. The poor will never suffer from starvation or lack of clothes unless the rich neglect their due. If they do, Allah will surely hold them accountable and punish them severely.” (Related by At-Tabarani in Al-‘Aswat and as-Saghir).

Important Notes Regarding Sadaqatul-Fitr

I. Hadrat ibn ‘Umar said, “The Prophet made incumbent on every male or female, free man or slave, young or old, the payment of one Sa’ of dates or barley as Sadaqat-ul-Fitr. The Messenger of Allah commanded that this sadaqah be paid before one goes to perform the Eid prayer.” [Sahih Bukhari – Book on Zakah, Volume 1, Page 204]

II. Hadrat Hasan said: Hadrat Ibn Abbas preached to the people towards the end of Ramadan, standing on the pulpit (in the mosque) of al-Basrah. He said: “Bring forth the sadaqah relating to your fast.” The people, as it were, could not understand. “Which of the people of Medina are present here? Stand for your brethren, and teach them, for they do not know” said Hadrat ibn ‘Abbas. He further added: “The Messenger of Allah prescribed this sadaqah as one sa’ of dried dates or barley, or half a sa’ of wheat payable by every freeman or slave, male or female, young or old.” When Hadrat Ali came (to Basrah), he found that the price had come down. He said: “Allah has given prosperity to you, so give one sa’ of everything (as sadaqah).” [Sunan Abi Dawood – Book on Zakah, Volume 1, page 229]

III. Hadrat ‘Abdullah ibn Tha’laba or Tha’laba ibn ‘Abdullah (narrator cannot recall exactly what the name was) ibn Abu Saghir, who narrates from his father that the Messenger of Allah said, “One sa’ of wheat is enough from every two; young or old; freeman or slave; male or female. Those of you who are rich will be purified by Allah, and those of you who are poor will have more than they gave returned by Him to them.” [Sunan Abi Dawood – Book on Zakah, Volume 1, Page 228]

IV. Hadrat ‘Abdullah ibn ‘Abbas reported that the Messenger of Allah prescribed Sadqatul Fitr, so that the fasts (kept throughout the month of Ramadan) may be purified from any falsehood, wrongdoing or evil talk, and (at the same time) it shall assist to feed the poor and the needy. [Sunan Abi Dawood – Book on Zakah, Volume 1, Page 227]

V. Hadrat ‘Amr ibn Shu’aib reports from his father, who reports from his grandfather that the Holy Prophet sent a person that he calls out loud in the streets of Makkah al-Mukarramah that Sadaqat ul Fitr is Wajib (necessary) upon every Muslim male or female; freeman or a slave; young or old. [Sunan Tirmidhi – Book on Zakah, Volume 1, Page 146]

Important Notes:
1. Sadaqa-e-Fitr is Wajib upon such a person who owns assets, which equal the value of the Nisab. Such individuals should give Sadaqa-e-Fitr on their behalf and on behalf of their children if they do not own assets equal to the value of Nisab. Yes, however, if the children do own assets which are equal to or more than the Nisab limit, then the Sadaqa-e-Fitr shall be given from their own wealth. [al-Durr al-Mukhtar, Bahar-e-Shari’at]

2. The owner of Nisab in the ruling as regards Sadaqa-e-Fitr is such a person who has 7 ½ Tola gold (93 grammes 312 milligrammes,) or 52 ½ Tola silver (653 grammes 184 milligrammes), or equivalent value in money or any other form of asset. Or, one owns a business or non-business stock equivalent to that value, and these goods are added to the basic necessities of living (Hajat-e-Asliyyah).

3. For the Sadaqa-e-Fitr to become Wajib it is not necessary that one has fasted. Therefore, if anyone did not fast due to any excuse valid in the eyes of the Islamic Law; such as one is a Musafir (travelling to a destination which is at a distance of approximately 57 ½ miles or 92 kilometres), or is ill such that his illness shall become worse if he fasts, or because of weakness caused by old age, or – Allah forbid! – one did not keep the fasts due to any non-valid reason, then the Sadaqa-e-Fitr is still Wajib upon the person. [Radd al-Muhtar – Vol. 2 Page 76 and Bahar-e-Shari’at]

4. If the father is so poor (that he cannot give his own Sadaqa-e-Fitr let alone on behalf of his children,) or has passed away, then it is Wajib on the grandfather to give Sadaqa-e-Fitr on behalf of his grandchildren. [al-Durr al-Mukhtar]

5. If one wants to give anything besides wheat, barley, dates or raisins; for example, rice, millet or any other linseed, then the price of 1 sa’ of wheat or ½ sa’ of barley should be taken into consideration.

6. In terms of weight, one Sa’ is four pounds, six and a half ounces (4lb 6.5 oz) and half a Sa’ is two pounds, three and a quarter ounces (2lb 3.25 oz).

7. It is Mustahab (an act of great reward) to give the Sadaqa-e-Fitr on the morning of Eid day (after the beginning time for Fajr), before going to the Eidgah to perform the Eid prayer. [Fatawa-e-‘Alamgiri – Vol. 1, Page 180]

8. It is permissible to give Sadaqa-e-Fitr prior to the month of Ramadan or in Ramadan before the day of Eid. [Fatawa-e-‘Alamgiri – Vol. 1 Page 179 and al-Durr al-Mukhtar]

Extracted From Anwaar al-Hadith, Pages 146 to 148
by Hadrat Allama Mufti Jalal al-Din Qadiri al-Amjadi

Zakat: The Third Pillar of Islam

Zakat is one of the five pillars of Islam. In importance, it is next to prayer and the commandments concerning Zakat and prayer in the Holy Qur’an occur together.

Zakat literally means purification, growth, righteousness, and blessing. According to the Shariah or Islamic law, it denotes a specific amount in the wealth of Muslims due for distribution among the needy in the community. The obligatory character of Zakat and punishment for those unmindful of this responsibility are spelled out in the Holy Qur’an thus: “Take sadaqah (alms) from their wealth in order to purify them and sanctify them with it, and invoke Allah for them.” (9:103) and;

“… And those who hoard the gold and silver (Al-Kanz: the money, the Zakat of which has not been paid) and spend them not in the Way of Allah, announce unto them a painful torment – on the Day when that (Al-Kanz) will be heated in the fire of Hell, and with it will be branded their foreheads, their flanks and their backs. “This is the (treasure) which you hoarded for yourselves: Now taste of what you used to hoard.” (9:34)

The payment of Zakat has a healthy impact on the giver, the recipient and the society at large. It purifies the assets of the giver, retains his quest for material goods and creates in him the virtue of sharing his wealth with others. It uplifts him from a life of material pursuit to a life endued with moral purpose.

Zakat satisfies the recipient’s needs and alleviates his suffering. Poverty is an invitation to disbelief; it may kill virtue. That is why Islam, instead of abandoning the poor to the caprice of the rich, makes a compelling demand for Zakat payment. The payer gives Zakat as an act of worship, while the destitute receives it as a right, without any obligation towards the payer.

Zakat thus creates love and brotherhood between the rich and the poor, minimizes social tensions and bridges the gap between the haves and the have-nots. It provides social and economic security to the Muslim community and brings its members closer together. Its rewards are boundless.

According to some Islamic scholars, Zakat in the legal sense means “a right on wealth” or “the specified part of wealth designated by Allah to be given to certain beneficiaries.” Zakat is not a tax.

It is a spiritual-material obligation on every Muslim in possession of a minimum amount of wealth, or more, for a period of one lunar year. The minimum Zakat payable on monetary wealth and on gold and silver is 2.5 per cent, or the 40th part of the wealth.

There are eight conditions which make Zakat obligatory, some of them relating to the owner and others to the possessions. They are: Anyone owning Zakatable wealth must be a Muslim, free person (not a slave), of sound mind, an adult, in complete ownership of his wealth, in possession of such wealth which is over and above the requirements to satisfy the essential needs of the owner and of those legitimately dependent on him or her, free from debt, and in possession of a defined quantity of wealth for one complete lunar year.

Zakat is not obligatory on those who have not reached the age of puberty. A child is not required to pay Zakat even if he or she is the owner of enough wealth which makes Zakat obligatory on an adult. The moment a minor reaches the age of puberty, the regulations relating to Zakat will become applicable. According to some Islamic scholars, however, the guardian of such a child should pay Zakat on behalf of the minor.

Zakat is calculated on the wealth possessed by a person, and unless and until he or she attains the minimum quantity of the specified wealth, he or she is not liable to pay Zakat. This minimum limit is known in the Shariah as Nisab.

The person who has the specified minimum and over is considered wealthy enough to pay Zakat and, in this manner, share his wealth with the indigent. Besides cash, Zakat is applicable only to the following categories of wealth: gold, silver, livestock that graze, and all types of commercial merchandise.

The possession of 7.5 tolas (87.48 grams) minimum gold or 52.5 tolas (612.36 grams) minimum silver, or their equivalent of cash, for one lunar year makes one liable to pay Zakat at the rate of 2.5 percent. It is payable on the minimum and whatever is in excess thereof. If someone possesses some gold and some silver but the quantity of each of the metals does not reach the minimum limit by itself, but they touch the minimum value if put together, then Zakat will become payable on the total.

Gold and silver in any shape or form – jewelry, utensils, etc. are all considered as wealth and Zakat becomes payable on them if the weight reaches the minimum limit and their possession completes 12 lunar months.

All jewelry made of gold or silver is subject to the payment of Zakat if the quantity reaches or exceeds the Nisab limit and remains in possession for 12 months, even if the jewelry is used everyday by the owner or kept for future use, because gold and silver in any form are liable for payment of Zakat. The same is applicable to gold and silver utensils.

Some other schools of Fiqh are of the view that the jewelry worn in normal use of Muslim women of that social status is exempt from Zakat.

Clothes, irrespective of cost and quantity, are exempted from Zakat. But if they have gold or/and silver embroidered or thread work on them, and the weight of gold or/and silver metal used therein reaches or exceeds the minimum Nisab limit, then Zakat will have to be paid on that portion alone at the end of every 12 months.

The amount of money possessed by one which could purchase the minimum Nisab quantity of gold or silver will be regarded as eligibility for the Nisab for the purpose of Zakat. If a person possesses, say, five tolas of gold or 25 tolas of silver, but he also possesses enough cash to purchase 2.5 tola of gold or 27.5 tolas of silver, then he will be considered as having reached the Nisab limit and will be liable to pay Zakat.

There is no Zakat on pearls and/or precious stones, provided they are not meant for trade or investment. Whenever a person’s wealth reaches the minimum Nisab, from that date calculation of the year will begin for the purpose of Zakat and Zakat will have to be paid on the completion of 12 months of the Hijra calendar.