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Questions and Answers on Zakat

Updated on April 26, 2017
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The author is a fervent observer of Islamic religious practices, wherein he finds resolute contentment for his soul.

This write up deals with general questions and answers related to Zakat. If you have a specific question, feel free to leave it in the comments and we will answer it according to your condition.

Zakat
Zakat | Source

Q1. Why do I have to pay Zakat?

As a Muslim one has to pay Zakat because:

  1. Paying Zakat is obligatory in Islam.
  2. It has numerous social benefits on the society.

Questions Related to Calculation of Zakat

Source

Q2. What are the assets on which I will have to pay Zakat?

Zakat levied at a rate of 2.5% p.a on the combined monetary value of the following four types of assets only, when a lunar year lapses on them. These are referred as Zakatable assets.

  1. All articles of gold.
  2. All articles of silver.
  3. Cash and equivalent.
  4. All assets in the ownership of the payer which are kept with the intention of selling or trading.

Example of articles in categories 3 and 4 are:

Cash and equivalent
Assets kept for selling or trading
Prize bonds
Goods kept for sale in shops and factories.
Saving certificates
Property purchased with the intention of selling.
Bank deposits
 
Market value of shares and stocks.
 

Q3. How to Calculate Zakat?

If the combined value of any one or more then one of the four categories mentioned above reache the designated value of Nisab and one whole lunar year passes on it then:

  1. One must sum up the value of his Zakatable assets.
  2. Deduct all accrued payments.
  3. Deduct principal amount of loans.
  4. Add all advance and prepaid payments.
  5. Calculate 2.5% of the final amount and this is the amount to be paid as Zakat.

Q4. What is the Rate of Zakat?

Zakat is levied at a rate of 2.5% p.a on Zakatable assets only.

Q5. On what date should I calculate and Give Zakat?

One must designate a date in the lunar year and value his wealth on that date each year and pay the subsequent amount as Zakat. This date can be any date depending on the will of the person. But it is preferred that one must remember the date on which he turned sahib-e-nisab first and designate that date as Zakat valuation date.

For example I turned sahib-e-nisab on 1st Ramadan 2016, therefore I will calculate my Zakat on 1st Ramadan 2017 exactly a year after it.

Now 1st Ramadan can be referred to as my Zakat valuation date.

Zakat that was calculated on 1st Ramadan may however be given on any date in the same year.

Q6. Assets are to Valued in Market Value or Cost Price when Calculating Zakat?

All Zakatable assets are to be valued at market value when calculating Zakat.

Market value is the amount you will pay if you purchase the same asset from the market.

Q7. Should I include my Employee Provident Fund in Zakat Calculation?

If you have already recieved your provident fund it will be included in zakat calculation.

If it is still withholded by the company zakat need not to be paid on it.

Q8. How to treat Loans in Zakat Calculation?

Answer will be updated soon.

Q9. Should Prize Bonds be Included in Zakat Calculation?

All prize bonds and saving certificates are equivalent of cash and thus Zakat is paid on them.

Q10. Can the amount of income tax or wealth tax be deducted from Zakat?

If any type of government tax is paid before the Zakat valuation date then the amount of taxes paid is not to be included in the value of Zakatable assets.

If the government tax is not paid until the Zakat valuation date then its value is to be included with the value of Zakatable assets.

Q11. How much Zakat is paid on Agricultural Produce?

Answer will be updated soon.

Questions Related to Nisab of Zakat

Source

Q12. What is the Nisab of Zakat?

Category
Nisab
Gold
7.5 Tolas
Silver
52.5 Tolas
Cash and equivalent
Equivalent to value of 7.5 Tolas of gold or 52.5 Tolas of silver. Which ever is less.
Assets kept for selling or trading
Equivalent to value of 7.5 Tolas of gold or 52.5 Tolas of silver. Which ever is less.
The Nisab of Zakat
Category
Nisab in Grams
Nisab in Dollars
Gold
87.48
3804.5
Silver
612.35
404.2
Cash or equivalent
Equivalent to value of 87g of gold or 612g of silver. Which ever is less.
Equivalent to value of $404.2
Assets kept for selling or trading
Equivalent to value of 87g of gold or 612g of silver. Which ever is less.
Equivalent to value of $404.2
The Nisab of Zakat in dollars and grams. Gold and silver prices determined on 30 July 2016

Summary

If the total inclusive value of all Zakatable assets of a person exceeds $400 approx, he has reached the Nisab of Zakat and will therefore be liable to pay it.

Q13. Who is Sahib-e-Nisab?

A person is said to be sahib-e-nisab if:

  • The value of his total Zakatable assets exceed the value of nisab.

Q14. When a Sahib-e-Nisab has to pay Zakat?

A sahib-e-nisab person will pay Zakat only if his total Zakatable assets stay above the value of nisab exactly one lunar year after the date on which his wealth first reached nisab.

For example I became sahib-e-nisab on 1st Ramadan 2016 and my total wealth was found to be above nisab on 1st Ramadan 2017 so now I will have to pay Zakat.

Q15. I reached the Nisab of Zakat once but then became bankrupt, do I have to pay Zakat on year end?

You will be entitled to pay Zakat if your wealth shows minor fluctuations above and below the value of nisab but is found to be above nisab at year end.

If it is found to be below nisab at year end then you will not be entitled to pay Zakat.

If a person has lost significant amount of his wealth and came way below the mark of nisab then he will not pay Zakat for the passed year but he will resume his year when he becomes sahib-e-nisab again.

Questions Related to Payment of Zakat

Source

Q16. Who can be paid Zakat?

Any:

  • Muslim
  • Who is not your blood relative,
  • Not a Sayed
  • And does not possess wealth equal to the Nisab

can be paid Zakat.

Q17. Can zakat be paid to Non Muslim?

Zakat cannot be paid to Non-Muslims.

Q18. Can Zakat be Paid to a Sayed?

Zakat cannot be paid to a Sayed.

Q19. How often do I have to pay Zakat?

Zakat is paid only once in a lunar year. One may designate the start and end dates of his year according to his will for example I will pay Zakat on 1st Ramadan every year.

Q20. What to do If I didn't Pay Zakat this Year?

If you didn't pay Zakat this year, you must calculate the amount of your Zakat for the missed year and pay it as soon as possible. Payment of Zakat for the current year will however be given preference.

Q21. Is it necessary to pay Zakat to a single person?

It is not necessary to pay Zakat to a single person. One can distribute his total calculated Zakat among different individuals according to his will.

Q22. When to Pay Zakat?

Zakat can be paid any time, once in a lunar year.

Q23. Can Someone else Pay Zakat on my behalf?

Yes, you can designate someone to pay Zakat on your behalf provided that he discharges his duty in a responsible way.

Q24. Can I give Zakat to Trusts and Charities that claim to collect Zakat?

Zakat can be given to trusts and charities only if you know that:

  1. They will pass it on to the target person within one year.
  2. They will distribute it in compliance with shariah laws. (That is they give the concerned person, ownership of money.)

Best options are those trusts and charities which are running under the supervision of renowned ulemas and scholars.

Q25. I have wealth less then Nisab, should I pay Zakat?

No, only people whose wealth exceed the Nisab one whole year pay Zakat. For example I became sahib-e-nisab on 1st Ramadan 2016 and then my total wealth kept on flucating above and below the Nisab's boundry, but on 1st Ramadan 2017 my total wealth exceeded Nisab. So I will have to pay Zakat for this year which has passed.

Q26. Is Zakah Payable on diamonds and other precious stones?

Zakat is not payable on diamonds and other precious stones (emeralds, rubies) however if diamonds and stones are kept for selling purpose for example one sells diamond rings, then this will be treated as an asset kept with the intention of trading and hence will be a Zakatable asset.

Q27. Can I pay Zakah to an indebted person?

Yes, if his debt is more then recievables and zakatable assets.

Q28. Should I pay Zakah on rented property and other rented assets?

Zakat is not paid on rented property and any other rented assets however the rent recieved is subject to Zakat.

Q29. Is Zakat payable on jewelry owned by wife?

Yes, if it reaches the mark of nisab. If it is not equal to nisab then wife / daghter will not be liable to pay zakat.

Q30. Is there Zakat on platinum jewelry?

Answer will be updated soon.

© 2016 StormsHalted

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    • profile image

      sikander kapoor 

      2 years ago

      Those people living happy life, they have to pay little money for zakat from saving money.

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