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Zakat Al-Maal FAQ

Zakat Al-Maal FAQ

Want to know more about Zakat Al-Maal

icon add white icon less white What is Zakat Al-Maal?

Zakat Al-Maal is a form of charity that every adult Muslim who meets the requirements of Nisab and Hawl must pay (for more information on Nisab and Hawl click here). Since Zakat Al-Maal is an obligatory charity (on those Muslims who meets the criteria), it is considered a sin if it is deliberately not paid. Zakat Al-Maal is 2.5% of one’s total saved wealth in a full-year period and is distributed to the poor and needy. Al-Ihsan foundation allows you calculate and pay this charity very easily. We also ensure it is distributed to the most vulnerable and needy people and families around the world. Please click here for more information on how to calculate and what to include in your calculations or download our app.

icon add white icon less white What is Nisab?

Nisab is a term which means the minimum amount of wealth a Muslim must have - after calculating necessary expenses - to be eligible to contribute zakat.

icon add white icon less white What is Hawl?

Hawl is a term which means that the wealth has been held for full one-year period which on that wealth the zakat should be paid. The Nisab is equivalent to 85 grams of pure gold or 595 grams of pure silver. The rate that must be paid for zakah is 2.5%, for example for a $1,000 you pay $25. Allah said…. “Take Sadaqah (alms) from their wealth in order to purify them and sanctify them with it, and invoke Allah for them. Verily, your invocations are a source of security for them; and Allah is All-Hearer, All-Knower” `{`al-Tawbah 9:103`}`

icon add white icon less white What are the 8 Categories where Zakat is Due?

There are 8 categories where zakat is due which is mentioned in Surah Tauba Ayah 60. At Al Ihsan Foundation we concentrate mainly on two of those categories which are the Fuqara’ and Al Masaakin, these two categories fall under extreme poverty.

icon add white icon less white How is the amount (Nisab) of Zakaat exactly calculated?

The Nisab for Zakaat Al-Maal is defined as the minimum amount of gold and silver (naqd) specified which one is required to pay Zakaat on. If the calculated amount over a lunar year exceeds the minimum amount, then Zakaat of this value becomes compulsory. Under the laws (Shariah) of Zakaat Al-Maal (wealth) the two types of naqd (gold and silver) and what serves their functions in modern times (commonly referred to as cash amounts), whether it is dollars, pounds, riyals, rupees etc. Calculation of Gold The Nisab for gold (and for currencies made from gold) is 20 mithqaalan, a unit of measure which is equivalent to 85 grams of pure gold. (1 mithqaal = 4.25 grams) Calculation of Silver The Nisab for silver is 200 dirhams, a unit of measure which is equivalent to 595 grams of pure silver (1 dirham = 2.975 grams). Therefore it becomes compulsory upon anyone who owns such gold or silver amounts to pay Zakaat on it in the amount of 2.5% It is well known that there is a noticeable disparity between the value of nisaab for gold and that of silver in our times. The best and most conservative anyone who may be going through financial hardship to assess how many dollars he has that have been in his possession for a complete lunar year (Hijri, which is 354 days). (Source: http://islamqa.info/en/64).

icon add white icon less white How often is Zakaat Al-Maal applicable and how much do I pay from the wealth I have?

Zakaat Al-Mal is 2.5% of ones total saved wealth in a full Lunar year period and must be intended for those less fortunate so that they are able to purchase the bare necessities. For example if one saves $1,000 over a 1 year period, he is required to pay Zakaat of $25. (Source: http://islamqa.info/en/64).

icon add white icon less white What type of wealth is payable for Zakaat Al-Maal

The saved wealth over the lunar year, can consist of: - Gold; - Silver; - Cash; - Shares; - Merchandise and profits; - Receivable loans (Money that you have loaned to others); - Property, business and other investments; and - Agricultural produce, animals, poultry and farming; - Etc

icon add white icon less white 4. I own a business, do I also pay Zakaat on the machinery/equipment I use and for stock I may have?

There is no Zakaat on shops and property used for business themselves; there is no Zakaat on land or buildings or on the furnishings and vessels in the store, no matter how much they are worth, unless these things have been prepared for sale, in which case Zakaat is due on them. This is what the scholars call Zakaat on trade goods. The basic principle is that everything that is prepared for sale is subject to Zakaat, and things that are used in the shop are not subject to Zakaat. The way in which the Zakaat is worked out is, the value of the goods that are in the store at the end of the year is worked out, then the Zakaat is paid on them at a rate of 2.5 % of the value that he/she is selling the goods for. (Source http://islamqa.info/en/20057).

icon add white icon less white Do I have to pay Zakaat on my car or vehicle that I use for transport?

Zakaat is only applicable to vehicles, where the intent is used for dealing in it such as renting or selling it/them. No Zakaat is due on the car that you rent out, rather Zakaat is due on the money you receive for that, if it reaches the nisab and one full year has passed. Further, if you acquire a car with the intention of dealing in it, then Zakaat must be worked out on the basis of its value when one year has passed, not the price at the time when you bought it. (Source: http://islamqa.info/en/93706)

icon add white icon less white Can I give Zakaat to my parents or children?

A Muslim cannot give his Zakaat to his parents or to his children; rather he has to spend on them from his wealth if they need that and he is able to spend on them. (Source: http://islamqa.info/en/81122).

icon add white icon less white Can I pay Zakaat on behalf of the deceased?

Zakaat Al-Maal and Zakaat Al-Fitr is obligatory for all Muslims, males and females, old and young, as stated by the Prophet (peace be upon him). It is only required from the living who are present at the time when it becomes due. (Source: https://islamqa.info/en/65780).

Want to know more about Zakat Al-Maal

icon add white icon less white What is Zakat Al-Maal?

Zakat Al-Maal is a form of charity that every adult Muslim who meets the requirements of Nisab and Hawl must pay (for more information on Nisab and Hawl click here). Since Zakat Al-Maal is an obligatory charity (on those Muslims who meets the criteria), it is considered a sin if it is deliberately not paid. Zakat Al-Maal is 2.5% of one’s total saved wealth in a full-year period and is distributed to the poor and needy. Al-Ihsan foundation allows you calculate and pay this charity very easily. We also ensure it is distributed to the most vulnerable and needy people and families around the world. Please click here for more information on how to calculate and what to include in your calculations or download our app.

icon add white icon less white What is Nisab?

Nisab is a term which means the minimum amount of wealth a Muslim must have - after calculating necessary expenses - to be eligible to contribute zakat.

icon add white icon less white What is Hawl?

Hawl is a term which means that the wealth has been held for full one-year period which on that wealth the zakat should be paid. The Nisab is equivalent to 85 grams of pure gold or 595 grams of pure silver. The rate that must be paid for zakah is 2.5%, for example for a $1,000 you pay $25. Allah said…. “Take Sadaqah (alms) from their wealth in order to purify them and sanctify them with it, and invoke Allah for them. Verily, your invocations are a source of security for them; and Allah is All-Hearer, All-Knower” `{`al-Tawbah 9:103`}`

icon add white icon less white What are the 8 Categories where Zakat is Due?

There are 8 categories where zakat is due which is mentioned in Surah Tauba Ayah 60. At Al Ihsan Foundation we concentrate mainly on two of those categories which are the Fuqara’ and Al Masaakin, these two categories fall under extreme poverty.

icon add white icon less white How is the amount (Nisab) of Zakaat exactly calculated?

The Nisab for Zakaat Al-Maal is defined as the minimum amount of gold and silver (naqd) specified which one is required to pay Zakaat on. If the calculated amount over a lunar year exceeds the minimum amount, then Zakaat of this value becomes compulsory. Under the laws (Shariah) of Zakaat Al-Maal (wealth) the two types of naqd (gold and silver) and what serves their functions in modern times (commonly referred to as cash amounts), whether it is dollars, pounds, riyals, rupees etc. Calculation of Gold The Nisab for gold (and for currencies made from gold) is 20 mithqaalan, a unit of measure which is equivalent to 85 grams of pure gold. (1 mithqaal = 4.25 grams) Calculation of Silver The Nisab for silver is 200 dirhams, a unit of measure which is equivalent to 595 grams of pure silver (1 dirham = 2.975 grams). Therefore it becomes compulsory upon anyone who owns such gold or silver amounts to pay Zakaat on it in the amount of 2.5% It is well known that there is a noticeable disparity between the value of nisaab for gold and that of silver in our times. The best and most conservative anyone who may be going through financial hardship to assess how many dollars he has that have been in his possession for a complete lunar year (Hijri, which is 354 days). (Source: http://islamqa.info/en/64).

icon add white icon less white How often is Zakaat Al-Maal applicable and how much do I pay from the wealth I have?

Zakaat Al-Mal is 2.5% of ones total saved wealth in a full Lunar year period and must be intended for those less fortunate so that they are able to purchase the bare necessities. For example if one saves $1,000 over a 1 year period, he is required to pay Zakaat of $25. (Source: http://islamqa.info/en/64).

icon add white icon less white What type of wealth is payable for Zakaat Al-Maal

The saved wealth over the lunar year, can consist of: - Gold; - Silver; - Cash; - Shares; - Merchandise and profits; - Receivable loans (Money that you have loaned to others); - Property, business and other investments; and - Agricultural produce, animals, poultry and farming; - Etc

icon add white icon less white 4. I own a business, do I also pay Zakaat on the machinery/equipment I use and for stock I may have?

There is no Zakaat on shops and property used for business themselves; there is no Zakaat on land or buildings or on the furnishings and vessels in the store, no matter how much they are worth, unless these things have been prepared for sale, in which case Zakaat is due on them. This is what the scholars call Zakaat on trade goods. The basic principle is that everything that is prepared for sale is subject to Zakaat, and things that are used in the shop are not subject to Zakaat. The way in which the Zakaat is worked out is, the value of the goods that are in the store at the end of the year is worked out, then the Zakaat is paid on them at a rate of 2.5 % of the value that he/she is selling the goods for. (Source http://islamqa.info/en/20057).

icon add white icon less white Do I have to pay Zakaat on my car or vehicle that I use for transport?

Zakaat is only applicable to vehicles, where the intent is used for dealing in it such as renting or selling it/them. No Zakaat is due on the car that you rent out, rather Zakaat is due on the money you receive for that, if it reaches the nisab and one full year has passed. Further, if you acquire a car with the intention of dealing in it, then Zakaat must be worked out on the basis of its value when one year has passed, not the price at the time when you bought it. (Source: http://islamqa.info/en/93706)

icon add white icon less white Can I give Zakaat to my parents or children?

A Muslim cannot give his Zakaat to his parents or to his children; rather he has to spend on them from his wealth if they need that and he is able to spend on them. (Source: http://islamqa.info/en/81122).

icon add white icon less white Can I pay Zakaat on behalf of the deceased?

Zakaat Al-Maal and Zakaat Al-Fitr is obligatory for all Muslims, males and females, old and young, as stated by the Prophet (peace be upon him). It is only required from the living who are present at the time when it becomes due. (Source: https://islamqa.info/en/65780).