Paying charity (Zakat) is one of the five pillars of Islam. The rules of Zakat in Islam compels every Muslim who has wealth (Nisab) and saves it for a year must pay 2.5% charity. This charity is called obligatory Zakat.
What is Nisab in Islam
According to the rules of Zakat in Islam, the Nisab requires a person to own 87.48 gr of gold or 612.36 gr of silver. That is, any adult or sane Muslim with excessive wealth as defined here as the Nisab must pay Zakat every year. Zakat must be paid after the completion of a lunar (Islamic) year.
Who is obligated to pay?
The rules of Zakat in Islam state that every sane adult Muslim (male or female) with more wealth than the minimum required amount of wealth (Nisab) is required to pay Zakat. The possessor of the wealth must pay 2.5% as the Zakat per annum.
Zakat-eligible wealth can take the form of gold, silver, silver and gold jewellery, currency notes, bank balances, shares, bonds, rental property, business goods, for-sale real estate, and piece of land (for business purpose) and so on.
Zakat Rules for Gold
Unlike paper money, In Islamic economic system real currency is considered metals with inherent value. As a result, gold and silver have the highest monetary value in an Islamic economic system. The value of gold is used to calculate the wealth. According to the rules of Zakat in Islam, gold is the standard for calculating a person’s overall wealth. After one year, wealth worth 87.48 grs of gold or 612.36 grs of silver must pay the Zakat.
Zakat Rules for Cash
In the modern world, most cash is in the form of paper currency. Therefore, for calculating Zakat, the whole amount of cash should be valued according to the value of the gold or silver. If the value of the cash reaches the Nisab (87.48 grs of gold or 612.36 grs of silver), in this condition, 2.5% of this cash must be paid as the Zakat.
Importance of Zakat in Islam
Donating for the sake of Allah will be only of those who believe and act righteously. Since Zakat money is given to the poor and oppressed in order to help them, it gives self-satisfaction to the giver and it is a means of purifying his or her wealth. It also helps fight poverty and make it disappear in some ways. The Prophet Muhammad said that giving Zakat is one of the best forms of charity, and it will be accepted by Allah. It is also one of the five pillars of Islam that every Muslim should follow.
Who is eligible for Zakat?
According to the rules of Zakat in Islam, poor and needy Muslims are eligible as the only recipients of Zakat. However, Zakat cannot be paid to parents, children, grandparents, grandchildren, or spouses (wives). Poor and needy relatives, such as real brothers and sisters, paternal and maternal uncles, and their families, can receive Zakat from donors. Zakat recipients, on the other hand, are listed below:
- The poor
- The needy
- The amilin (those who are appointed by the state for collecting the funds of the Zakat, their salaries can be determined by the state and they can be paid from the amount of the Zakat)
- Those whose hearts are to be reconciled; (new Muslims and the friends of the Muslim community).
- Those in bondage (slaves and captives).
- The debt- ridden.
- In the cause of Allah.
- The wayfarer; (who are stranded on traveling with few resources).
Zakat Rules
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Is Zakat based on income or savings?
Zakat is calculated on the amount that equals Nisab. According to the rules of Zakat in Islam, Nisab refers to the wealth’s monetary value, which is equivalent to 87.48 grs of gold or 612.36 grs of silver. If a sane and adult Muslim has the wealth of the stated value after a year, he or she must pay 2.5% Zakat on it.
What is the minimum amount to pay Zakat on?
Minimum monetary value of the wealth should be equal to 87.48 grs of gold or 612.36 grs of silver.
What are the 3 conditions of Zakat?
The rules of Zakat in Islam state three conditions. Zakat is due when three conditions for a person and his wealth coincide: the payer must be a Muslim, wealth must reach a certain level (nisab), and a lunar year must pass while wealth remains at the bare minimum.
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