What is Zakat – How it Pays and Works
Define zakat
Zakat refers to the annual contribution to charity
required by Islamic law. The basis of this gift includes all disposable income,
qualified property, and other assets. Zakat is the third one of the five
pillars of Islam.
Zakat Meaning
Zakat directly translates to “that which
purifies”. This refers to the notion that Zakat cleanses one’s wealth.
How Zakat Works
There are Five Pillars of Islam the
declaration of religion, prayer, fasting during Ramadan, the Hajj pilgrimage,
and zakat. Zakat is a compulsory technique for Muslims who earn above a
sure threshold. It should no longer be stressed with Sadaqah, the act of
voluntarily giving charitable items out of kindness or generosity.
Religious texts provide complete descriptions
of the minimum quantity of zakat that ought to be distributed to the ones less
fortunate. It normally varies, depending on whether wealth got here from farm
produce, livestock, enterprise activities, paper forex, or treasured metals
like gold and silver.
Zakat is based on income and the value of possessions. The common minimum amount for those who qualify is 2.5% or 1/40 of a Muslim's total savings and wealth.
The recipients of zakat are
- The poor and needy
- Struggling Muslim converts
- Enslaved people
- Individuals in debt
- Soldiers fighting to protect the Muslim community
- Those stranded during their travels
Key points
- Zakat is a non-secular duty for all Muslims
who meet the necessary standards to donate a sure element of their wealth each
12 months to charitable causes.
- It is said to purify every year earnings that are over and above what's required to offer people and their families with their critical needs.
- Zakat is primarily based on profits and the
fee of possessions.
- The common minimum amount for individuals who qualify is 2.5% or 1/40 of a Muslims general financial savings and wealth.
- No zakat is required whilst someone's personal wealth falls beneath the brink at some stage in a lunar year.
How Many Types Of Zakat In Islam?
Zakat refers to two types: Zakat ul-Mal and
Zakat ul-Fitr. Zakat ul-Mal is the obligatory annual payment that can be
made at any time. However, Zakat ul-Fitr (Fitrana) must be made during
Ramadan, ahead of the Eid prayer.
Can Zakat Be Donated For Education?
Educational institutions like schools aren’t
eligible for receiving Zakat as Zakat payments are intended to provide someone
who has nothing with something. However if the students are eligible for Zakat
it would be possible to donate to them.
How Do You Calculate Zakat?
Muslims should take inventory of their
possessions and wealth. Once they reach nisab or the threshold, which is the
value of 87.48 grams of gold or 612.36 grams of silver, they must pay zakat.
The total amount to be paid is 2.5% or 1/40 of their total savings and wealth.
Muslims can use any number of zakat calculators which are available online to
determine their obligations.
How Much Are Muslims Obligated to Pay in Zakat?
Muslims are obligated to pay 2.5% of the total
value of their wealth less any liabilities in zakat provided they reach nisab.
This is the threshold, which is the value of 87.48 grams of gold or 612.36
grams of silver. Some Muslim countries make zakat mandatory just like taxes. Others, though do not
obligate their citizens to do so.