What is Zakat? Zakat is the third pillar of Islam. It literally means “to increase”. So, Technically it means to purify one’s possession of wealth by distributing a prescribed amount which has to be given to the poor as a fundamental Ibaadat.
Zakat in the Quran:
Zakat is mentioned seventy times in the Quran. Allah says in the Quran:
The parable of those who spend their wealth in the way of Allah is that of a grain of corn. It grows seven ears and each ear has a hundred grains. Allah increases manifold to whom He pleases. (Baqarah 261).
In the Quran:
…..And establish regular Salaat and give regular Zakat.
Types of Wealth on which zakat is compulsory:
- Gold & Silver (whether jewelry or any other form).
- Merchandise for business.
- Income derived from properties.
- Value of property bought for resale.
- Cash currency (on hand or in the bank).
- Monies owing to you (details to be sought from an Aalim).
- And Livestock (the Nisaab of livestock is different from above).
Types of Wealth on which zakat is not compulsory:
- Home for living.
- Household requirement e.g. furniture, car, etc.
- Personal requirements (not of gold and silver.)
- Other precious metals or stones, such as diamonds which are for personal use.
- Fixtures and fittings and other equipment required to run the business e.g. delivery trucks etc.
- If liabilities exceed assets.
The amount of wealth that makes one for zakat is called Nisaab. The Nisaab of gold and silver settled by Hazrat Muhammad(SAW) is as per the following:
- Gold 87.48 Gram 7.50Tolas 1350Grains 2.8125Troy Oz.
- Silver 612.36Gram 52.50Tolas 9450Grains and 19.6875 Troy Oz.
So, Nisaab of money, stock, or bonds, other money resources is the proportionate measure of Gold or Silver. Nisaab is ascertained by including the money estimation of the considerable number of advantages, for example, gold, silver, coin, and so on. and in the event that it is equivalent to or in the abundance of the base Nisaab as determined in the above table, the Zakat is expected at the rate of 2.5%.
Recipient of Zakat:
The recipients of Zakat, according to the Quran are as follows:
Alms are for the poor and the needy. And those employed to administer (the funds); for those whose hearts have been (recently) reconciled (to truth); for those in bondage and in debt. And for the wayfarer: (Thus is it) ordained by Allah. And Allah is full of Knowledge and Wisdom. (Quran 9:60)
Punishment for not giving Zakat:
In Quran Allah says:
And there are those who hoard gold and silver and do not spend it in the way of Allah, announce to them a most grievous penalty (when) on the Day of Judgment heat will be produced out of that wealth in the fire of Hell. Then with it they will be branded on their forehead and their flanks and backs. (It will be said to them) This is the treasure which you hoarded for yourselves. Taste then the treasure that you have been hoarding. (Al-Quran 9:34-35)
So, Ramzan is coming and we as a Muslim and it is compulsory for us to give zakat.