With Ramadan nowhere, many of us are preparing to give our annual Zakat. It is one of the five pillars of Islam, along with prayer, fasting, pilgrimage (Hajj) and belief in Allah (SWT) and His Messenger, Prophet Muhammad (PBUH).
With the literal meaning of the word being ‘to cleanse,’ Muslims believe that paying zakat purifies, increases and blesses the remainder of their wealth. Its importance can be realized from the fact that in 82 verses of the Qur’an, Zakat is associated with prayer (Salah), such as:
“And establish prayer and give Zakat, and whatever good you put forward for yourselves – you will find it with Allah.” (2:110, Qur’an)
Calculating your Zakat and getting your head around the basics can be sometimes difficult and for that reason, we have cleared up the main misconceptions about Zakat.
Who has to give Zakat and How Much?
Zakat is obligatory on one who has wealth that reaches or exceeds a certain level called the Nisab. Unlike tax, however, Zakat is an act of worship for which one receives a reward from Allah.
If you are in possession of money, gold, silver, stocks, or shares that amount to more than the value of 85 grams of gold or 595 grams of Silver called nisab (at current market rates) then you are obliged to pay Zakat.
If you own this amount for a full lunar year then your Zakat is due on the last day of the 12 lunar months. The rate of Zakat is 2.5%, i.e. 2.5 cents in every dollar. Ignoring to pay Zakat, on the other hand, is a major sin. According to the scholars, anyone who does not pay Zakat by denying its obligation is considered a disbeliever.
Recipient of Zakat
The Poor – Those receiving little or no income.
The Needy – Someone who is struggling to meet their basic needs.
Administrators of Zakat – Those who are responsible for collecting, storing, guarding, registering and distributing Zakat.
Those who are new to Islam.
Those in bondage – Freeing those who are enslaved/ held captive.
Those in Debt – As long as the debts were not incurred through acts against Islamic law.
Who cannot be given Zakat?
Zakat cannot be given to parents, grandfather, etc., or to one’s children and grandchildren. Zakat contributions cannot be given to such institutions or organizations that do not give the rightful recipients possession of Zakat.
Zakat cannot be given to non-Muslims. If one cannot determine whether the recipient is needy or not, then it is better to make certain before giving him Zakat. If Zakat is given without inquiry and subsequently it is known that the recipient is wealthy the Zakat is not valid. It has to be given again.
Zakat will not be fulfilled by purchasing books for an institution, or land purchased for public utility and made Wak’f. Zakat cannot be used for the Kaf’n of a deceased person who has no heirs, because at that time he/she cannot become the owner.
Final Words
“True piety is this: to believe in God, and the Last Day, the Angels, the Book, and the Prophets, to give of one’s substance, however cherished, to kinsmen, and orphans, the needy, the traveler, beggars, and to ransom the slave, to perform the prayer, to pay the Zakat.” Surah Baqarah, Ayah 177 (Qur’an 2:177).”
Zakat is not a voluntary charity or tax, but it is an obligation as it is one of the 5 main pillars of Islam. By giving Zakat, a Muslim acknowledges that everything belongs to Allah, and we should use it to remember Allah and help those who are in need.
Our environment and the world in which we live and work are the mirrors of our attitudes and deeds. Human life is not meant to be wasted in selfishness. It is meant to be dedicated to the good of others. A person of high character is the one who serves the family, society, and its people and gives charity or Zakat to empower others to have a better life.
