Introduction
Zakat is one of the five pillars of Islam. Zakat means Purification, a charity which is given to the needy. It is an obligated act that purifies one’s wealth and reduces the economic gap through those able to give.
What is Zakat?
Zakat means “purification” and “growth” in Arabic. Under Islamic law, it is a mandatory annual donation of a portion of one’s wealth to the needy. Zakat word comes several times in the Holy Quran. The word zakat and word prayer are linked with it. It means paying one’s zakat is as important as performing prayer in Islam.
Why Is Zakat Important in Islam
Zakat is the third pillar of Islam which indicates its essentiality in a Muslim’s faith. Just like prayer and fasting, it is an obligation that those who qualify must not neglect. Paying zakat purifies one’s income and wealth, removing greed and selfishness. Money becomes beneficial and not hoarded as a result of zakat. Zakat assists in lessening economic inequality by redistributing the wealth from the rich to the poor. It gives financial assistance to the poor, debt-ridden people, orphans, and the needy. Giving zakat makes you humble and learn to be grateful. This teaches Muslims that they have a responsibility towards society and strengthens their bond with Allah.
Who is Eligible to Pay Zakat?
A person from a Muslim faith becomes eligible for Zakat if:
- The person has attained adulthood (puberty)
- The person is mentally sound
- The person possesses wealth from above the value of Nisab
- Has owned the minimum wealth for one full lunar year (Hawl)
Who Can Receive Zakat?
Zakat pays eight categories of people as mentioned in the Quran (9.60). They are as follows:
- Al-Fuqara: The poor, deprived individuals with less means to earn their livelihood.
- Al-Masakin, which usually refers to the needy, those unable to suffice for their necessities.
- The Zakat Administrators constitute those responsible for collecting and distributing Zakat
- Muallafatu Qulubuhum: Converts who need financial support.
- Fir-Riqab: To emancipate involuntary servitude for a person.
- Al-Gharimin: People indebted to other individuals or groups.
- Fi Sabilillah: Those fighting in the course of Allah.
- Ibnus-Sabil: Persons lacking resources to get home.
How to Calculate Zakat?
The process to arrive at the Zakat is more or less the same for everyone, that is, it is 2.5% of one’s wealth over and above the Nisab. The practical procedure for calculating the Zakat:
- Step 1: Total Wealth
The following wealth items are counted:
Cash-in-hand, bank, or savings accounts
Gold and silver (value determined in real-time market)
Investments- such as stocks, bonds, and shares, or any business interest
Rental income
Business inventories
Holdings in cryptocurrency (if any)
- Step 2: Subtract What You Owe
Once the debts and liabilities incurred are deducted, they are:
Personal loans.
Business debts–for example, loans taken for the purchase of business machinery.
Bills not yet paid
- Step 3: It Is Important to Check If One Should Have the Nisab or Not
Nisab is the lowest possible amount of wealth that has to be held by a person for zakat to become an obligation. It was historically defined as either 85 grams of gold or 595 grams of silver. Thus, one can use the current prices of gold or silver to decide if his/her wealth is above the Nisab.
- Step 4: Multiply by 2.5%
If yours is above Nisab, the zakat amount is 2.5% of that wealth.
Example of calculating Zakat:
Total wealth: $10,000
Total liabilities: $2,000
Net wealth: $8,000
Determined Nisab (silver-based): $500
Since $8,000 is above Nisab, Zakat = 2.5% of $8,000 = $200.
Best Practices for Payment of Zakah
Payment in Installements: Pay Zakat in monthly installments instead of complete payment once in a year so that it may be less stressful.
Prioritize Need-Based Relatives: By merit of that, it is recommended to include relatives if they fall under those who live at risk of falling into within the queues of zakat receivers.
Trustworthy Organization: Ensure that the right recipient will be reached through your donation and then transfer the funds to credible charities.
Maintain Records: Documentation for each of your future zakat payments must be kept to show how accountable one has been.
Conclusion
Zakat is not only a financial obligation. It is worship that enforces belief, works for social justice, and purifies wealth. In this way, Muslims contribute to society being more equal and compassionate. Learning to calculate and distribute zakat properly ensures that this pillar of Islam is fulfilled with duty, both for the giver and for the receiving individual.
It is high time if you are to calculate and give this year’s zakat to those who really desire it, and make a difference in the life of someone needy.
Frequently Asked Questions (FAQs)
✅ Can Zakat be given to family members?
Direct dependents, such as parents, children, or spouses, cannot collect Zakat. Other eligible relatives, such as poorer siblings, cousins, uncles, or aunts, can collect Zakat.
✅ Is Zakat applicable on salary?
The answer is no; Zakat is not applied on salary as per the standard meaning. Rather, it is necessitated on that wealth which is above Nisab for an entire lunar year. Once that condition is met, Zakat will also apply to any such savings that have withstood the Nisab threshold for a year.
✅Can Zakat be advanced?
Yes, it can be advanced with the intention of being unable to pay Zakat later due to financial constraints. Many pay their Zakat on a monthly basis in this regard.
✅What if I do not pay my Zakat?
If you have not been paying Zakat in the past years, you will have to compute how much has been unpaid and pay it as soon as possible. It is an obligation in religion, hence one must pay up.
✅Is Zakat applicable to gold jewelry?
Yes, the Zakat is due each year on the gold jewelry, when its weight reaches or exceeds the amount of 85 grams.