The importance of Zakah:

 Zakah is an obligatory act ordained  by Allah (swt) to be performed by all practicing Muslims who have the financial means (Nisab). Zakah provides us with the opportunity of sharing our excess wealth with those less fortunate than ourselves. In fact that our wealth belongs to Allah and we are just the trustees of His wealth.

Linguistically, ZAKAH has two meanings: purification and growth. Technically, it means to purify ones possession of wealth by distributing a prescribed amount to the poor, the needy, the slaves and the travellers.

Zakah is one of the five pillars of Islam. It has been mentioned, along with daily Prayers (Salah), over seventy times in the Quran. Therefore, we can conclude that after Salah, Zakah is the most important act and a compulsory duty in Islam. Those who fulfil this duty have been promised abundant reward in this world and the hereafter as well.

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 hundred grains, Allah increases abundant to whom He pleases.”(Al-Baqarah:261)

Benefits of giving Zakah:

It reminds Muslims of the fact that whatever wealth they may possess is due to the blessings of Allah and as such it is to be spent according to Allah’s commands.

A shelter on the Day of Judgment.

Zakah functions as a social security for all.

Economically, Zakah is the best check against savings.

Zakah payer pays his dues to Allah as an act of worship, a token of submission and an acknowledgment of gratitude.

The receiver of Zakah receives it as a grant from Allah out of His bounty, a favour for which he is thankful to Allah.

Increase in wealth and protection from losses.

Protection from the anger of Allah and from a bad death.

Zakah is obligatory upon a person if:

• He / she is an adult, sane, free and Muslim.
• He/she must possess wealth in excess of specified minimum (Nisab) excluding his or her personal needs (clothing, household furniture, tools, cars etc. are termed article of personal needs).

• It should be possessed for a complete  lunar year.

• It should be of productive nature from which one can derive profit such as merchandise for business, gold, silver, cash and livestock etc.

What is Nisab:

The amount of wealth which makes one liable for Zakah is called Nisab.
Gold 87.48 Grams or 7.50 Tolas.
Silver 612.36 Grams or 52.50 Tolas.

Nisab of cash, stock or bonds, other cash assets is the equivalent amount of Gold or Silver. Nisab is calculated by adding up the cash value of all the assets such as gold, silver, currency and if it is equal to or in excess of the minimum Nisab as specified above, the Zakah is due at the rate of 2.5%.

The payment of Zakah is compulsory on the excess wealth or effects, which is equal to or exceeds the value of Nisab, and which is possessed for a full Islamic year. If such wealth decreases during the course of the year and increases again to the value of Nisab before the end of the year, the Zakah then must be calculated on the full amount that is possessed at the end of the year.

Types of wealth on which Zakah is compulsory:

• Gold and silver, in any form.
• Cash, bank notes, stocks, bonds etc.
• Merchandise for business, equal to the value of Nisab.
• On Income derived from rental business.
• Live stock.

Zakah cannot be given to the following:

• Zakah cannot be given to the descendants of Prophet Muhammad (saw)

• Zakah cannot be given to parents or grandparents.

• In the same manner one’s children or grandchildren cannot be given Zakah.

• A husband and wife cannot give Zakah to each other.

Types of wealth on which Zakah is not compulsory:

• On any metals other than gold or silver.

• Equipment and fittings of a shop, car or any delivery vehicle etc., which is used in running business.

• Diamonds, pearls, other precious or semi precious stones which are for personal use.

• There is no Zakah on personal residence, household furniture, pots and pan, personal clothing, whether they are in use or not.

• There is no Zakah on a person whose liabilities exceeds or equals his/her assets. (Home Mortgage in this country is not to be counted as personal liability for the Zakah purpose).

Distribution of Zakah:

• Zakah should be given as soon as possible after it becomes due.

• All of the Zakah can be given to one person or to several persons.

• A poor man cannot be paid for his work from Zakah nor can Zakah be given in payment of services, except to the people appointed by the Islamic government to collect Zakah.

• Zakah cannot be given for the construction of Masjid, Madrassah, Hospital, a well, a bridge or any other public facility.

• Zakah can be paid in kind from the same merchandise on which it is due, or alternatively, it could be paid in cash.

The punishment for not paying Zakah:

Allah says in the Quran:

والذين يكنزون الذهب والفضة ولا ينفقونها في سبيل الله فبشرهم بعذاب اليم –

يوم يحمى عليها في نار جهنم غتكوى بها جباههم وجنوبهم وظهورهم هذا ما كنزتم لانفسكم فذوقوا ما كنتم تكنزون –

“And there are those who store gold and silver and do not spend it in the way of Allah, announce to them a most severe 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 sides and backs. (It will be said to them) This is the treasure which you stored for yourselves, taste then the treasure that you have been saving.”  (Al-Tawbah:34-35)