Zakat in Islam: Its importance in the light of the Qur’an and Hadith

What is Zakat in Islam? Zakat is one of the most important pillars of Islam. Out of the five essential creeds of Islam, Zakat is the third one. Islam requires wealthy Muslims to donate a percentage of their wealth to the poor and needy. The institution of Zakat in Islam makes Muslims the most distinguished community, who must pay 2.5% of their excessive wealth to the needy and the poor.

Zakat becomes obligatory every year; however, it is required to be paid on the savings, not on the gross or net income. The value of net or gross income can be any amount, but Zakat becomes obligatory on savings every year, which should be equal to the Nisab. Nisab necessitates the possession of 87.48 gr of gold or 612.36 gr of silver. That is, any adult or sane Muslim of any gender, with excessive wealth, as defined here as the Nisab, is required to pay Zakat annually. Zakat must be paid at the end of each lunar (Islamic) year.

Numerous Quranic verses discuss the significance of Zakat (alm) and its consequences in this world and after death. According to Islamic law, a wealthy Muslim must pay 2.5% of his or her hard-earned money in order to gain Allah’s (God’s) pleasure and avoid torment.

What is Zakat in Islam

Zakat in Islam is the amount that each wealthy Muslim is required to pay to the needy and poor. The Quran contains a list of Zakat recipients; it includes poor relatives other than spouses, children, parents and grandparents. 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).

As previously stated, Zakat is 2.5% of the wealth that a sane and adult Muslim has saved over the course of a year. It does not only apply to cash or savings; it also applies to commercial property and business goods. This is the payer’s sole and religious responsibility; he or she must calculate the amount of Zakat.

In an Islamic state, Zakat is collected by the state-run Bait al-Mal. In an Islamic state, Bait al-Mal is the treasury, which is in charge of collecting and spending money for the general welfare. Contrarily, in a non-Islamic state individuals bear responsibility. This is the payer’s sole and religious responsibility; he or she must calculate the amount of zakat owed and distribute it on an individual basis.

Importance of zakat in Islam

Because Islam is concerned with human welfare, the accumulation of wealth is frowned upon. Usury in financial transactions is strictly prohibited in Islam, and Muslims are encouraged to spend their wealth for the sake of Allah. Serving fellow humans, oppressed people, and the needy, as well as other good deeds and religious activities such as mosque construction, are the best causes.

Paying Zakat, according to Islamic belief, does not reduce wealth. When a Muslim spends something for the sake of Allah, he or she is actually making a deal with Allah, and Allah in turn increases his or her wealth, for instance, “The example of those who spend their wealth in the way of Allah is like a seed [of grain] which grows seven spikes; in each spike is a hundred grains. And Allah multiplies [His reward] for whom He wills. And Allah is all-Encompassing and Knowing.” (Quran, 2: 261).

This activity is extremely important from a social standpoint. A wealthy Muslim is obliged to build a healthy society. His Zakat provides relief to the oppressed and underprivileged. For example, by using Zakat, unemployed youth can be given business opportunities, poor students can pay their college and university fees, people who are hungry can be given food, and those who are homeless can be given houses.

Importance of Zakat in Qur’an and Hadith

Zakat purifies the wealth and the souls, according to the Qur’an, “(O Prophet), take sadaqa (zakat) out of their property-thou wouldst cleanse them and purify them thereby (Qur’an, 9: 103). Numerous Qur’anic verses and sayings of the Holy Prophet Muhammad (peace be upon him) encourage Muslims to spend their money for the sake of Allah.

The obligatory Zakat in Islam has been mentioned in hundreds of verses that instruct Muslims to pay Zakat. According to the Qur’an, the character of a Muslim is “who believe in the unseen, establish prayer, and donate from what We have provided for them.” (Quran, 2: 3). Jarir bin ‘Abdullah narrated, fulfilling the quality of a believer, “I gave the pledge of allegiance to the Prophet (peace be upon him) for offering prayer perfectly giving Zakat and giving good advice to every Muslim.” (Bukhari, v. 2, 24: 484).

The ability to spend wealth for Allah’s sake and to make wise decisions are regarded as great virtues, narrated Ibn Masud: “I heard the Prophet saying, “There is no envy except in two: a person whom Allah has given wealth and he spends it in the right way, and a person whom Allah has given wisdom (i.e. religious knowledge) and he gives his decisions accordingly and teaches it to the others.” (Bukhari, v. 2, 24: 490).

Furthermore, Allah instructs, “Establish prayer, and pay alms (zakat). Whatever good you send forth for yourselves, you will ˹certainly˺ find ˹its reward˺ with Allah. Surely Allah is All-Seeing of what you do.” (Quran, 2: 110). Allah appreciates Muslims who spend their wealth for the benefit of society; one verse describes righteousness as spending one’s wealth for the sake of Allah and society, “Righteousness is not in turning your faces towards the east or the west.

Rather, the righteous are those who believe in Allah, the Last Day, the angels, the Books, and the prophets; who give charity out of their cherished wealth to relatives, orphans, the poor, ˹needy˺ travellers, beggars, and for freeing captives; who establish prayer, pay alms-tax, and keep the pledges they make; and who are patient in times of suffering, adversity, and in ˹the heat of˺ battle. It is they who are true ˹in faith˺, and it is they who are mindful ˹of Allah˺. (Quran, 2: 177)

Allah has warned those who only accumulate their wealth and do not spend it for the sake of Allah and do not help the needy and the poor, “The Day ˹will come˺ when their treasure will be heated up in the Fire of Hell, and their foreheads, sides, and backs branded with it. ˹It will be said to them, ˺ “This is the treasure you hoarded for yourselves. Now taste what you hoarded!” (Quran, 9: 35).

Similar narration is found in the sayings of the Holy Prophet Muhammad (peace be upon him), Abu Huraira reported Allah’s Messenger (may peace be upon him) as saying: “No owner of the treasure who does not pay Zakat (would be spared) but (his hoards) would be heated in the Fire of Hell and these would be made into plates and with these his sides, his forehead would be cauterised till Allah would pronounce judgment among His servants during a day, the extent of which would be fifty thousand years…” (Sahih al-Muslim, 5: 2163).

The nisab of the zakat in Islam (the possession of the minimum amount that makes zakat obligatory) has been determined according to the various sayings of the Holy Prophet (peace be upon him). For example: Abu Sa’id al-Khudri reported Allah’s Messenger (may peace be upon him) as saying: “No sadaqa (Zakat) is payable on less than five wasqs of (dates or grains), on less than five camel-heads and on less than five uqiyas (of silver)” (Sahih al Muslim, 5: 2134).

The same narration is recorded by Bukhari, Narrated Abu Said: “Allah’s Apostle (peace be upon him) said, “No Zakat is due on property mounting to less than five Uqiyas (of silver), and no Zakat is due on less than five camels, and there is no Zakat on less than five Wasqs.” (A Wasqs equals 60 Sa’s) & (1 Sa=3 Kg App.). (Bukhari, v. 2, 24: 487).

Who is eligible for Zakat

• 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).

Rules of Zakat in Islam and its Conditions

Zakat on Property: Land and Property for commercial & non-commercial use

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