Zakat Rules That Islam Wants You to Know

Zakat Rules That Islam Wants You to Know

Zakat rules in Islam

What is Zakat? 

The obligatory giving of charity known as zakat is one of Islam’s five pillars. “Zakat” comes from the Arabic word “zakaa,” which means “to clean,” “to grow,” and “to increase.” In Islam, Zakat is seen as a way to clean up one’s wealth and possessions, and also to get more blessings and rewards from Allah. It is an annual payment that Muslims, who are financially able, are required to make to help those in need. There are certain Zakat rules that every Muslim needs to follow. It is typically calculated as 2.5% of one’s wealth after deducting any debts or expenses. It is applicable on cash, gold, silver, property, and investments.

Importance of Zakat 

The importance of Zakat in Islam cannot be overstated, as it serves as a means of social welfare and promotes economic justice in society. By giving Zakat, Muslims can help people who are poor, hungry, or going through hard times. It also reinforces the principles of gratitude, compassion, and generosity, and fosters a sense of community and brotherhood among Muslims.

In addition, Zakat serves as a reminder to Muslims of their responsibility to use their wealth and resources in a way that is pleasing to Allah and beneficial to society. It is also believed that by fulfilling the obligation of Zakat, one can attain spiritual purification and gain Allah’s blessings and rewards in this life and the hereafter.

Why does Islam Specify Zakat Rules?

Islam specifies these rules for several reasons, including:

1. Fulfilling a Religious Obligation

Zakat is one of the five pillars of Islam, which means it is an important part of the religion and a religious duty that every Muslim must fulfill. These Zakat rules in Islam ensure that the obligation is fulfilled in a fair and consistent manner.

2. Promoting Social Justice

Zakat is an important means of promoting social justice and alleviating poverty. Islam ensures that it is distributed fairly and reaches those who are in need.

3. Encouraging Generosity

Islam encourages its followers to be generous and to give to those in need.

4. Maintaining Economic Stability

Zakat plays an important role in maintaining economic stability and preventing the concentration of wealth in the hands of a few. By requiring Muslims to give a portion of their wealth as Zakat, Islam helps to distribute wealth more evenly throughout society.

5. Strengthening Community Bonds

Zakat can be given to deserving people among relatives, neighbors, and the whole community. That’s how Islam helps to strengthen community bonds and encourage cooperation and mutual support.

Zakat rules in Islam are formulated to promote social welfare, economic stability, and spiritual growth, while also fulfilling an important religious obligation.

Zakat Rules For Various Types of Donations

Zakat-ul-Fitr Rules 

Zakat-ul-Fitr is a special type of charity that is obligatory upon every Muslim who has the means to do so, during the month of Ramadan. It is paid before Eid-ul-Fitr, which marks the end of Ramadan. Here are some of its rules.

  1. Obligation: Zakat-ul-Fitr is obligatory upon every Muslim who possesses the minimum amount of wealth (Nisab) needed to pay Fitrana. 

  1. Timing: Zakat-ul-Fitr must be paid before Eid-ul-Fitr, preferably during the last few days of Ramadan. It is not permissible to delay it beyond this time.

  1. Amount: The amount of Zakat-ul-Fitr is fixed and is equivalent to approximately 3 kg of staple food in the local market. This amount may vary depending on the location and market prices.

  1. Eligibility: Everyone in the family, including children and servants, should pay Zakat-ul-Fitr as long as they meet the requirements.

  1. Method of Payment: As per the Zakat rules, Zakat-ul-Fitr can be paid in cash or staple food items like rice, wheat, dates, or barley.

  1. Distribution: Zakat-ul-Fitr is most often given to poor and needy people who can’t fulfill their basic needs. It can also be given to institutions or organizations that help people in need.

It is important to note that Zakat-ul-Fitr is separate from Zakat, which is paid annually and is based on a person’s wealth over the course of a year, But you can also give charity in Ramadan, without any rule. 

Zakat Rules for Gold

The rules to pay Zakat on gold are:

  1. Eligibility: Zakat on gold is only required if a person owns a certain amount of gold, known as the Nisab i.e. 87.48 grams.

  1. Calculation: Zakat on gold is calculated as 2.5% of the total weight owned. For example, if a person owns 100 grams of gold, they will be required to pay 2.5 grams of it as Zakat. You can use our Zakat calculator to know exactly how much you have to pay.

  1. Timing: Zakat on gold should be paid after a full lunar year has passed since the gold was acquired. If a person acquired gold during the month of Ramadan, they should wait until the following Ramadan to pay Zakat on it.

  1. Currency Conversion: If a person wishes to pay Zakat on gold in cash, they should convert the weight of gold into the local currency at the current market price.

  1. Ownership: Zakat on gold is only applicable on that is unused and not for gold that is used for personal or business purposes. For example, gold that is worn as jewelry or used for manufacturing purposes is not subject to Zakat.

It is important to note that Zakat on gold is separate from that on other forms of wealth, such as cash, stocks, and property. 

Zakat Rules for Money 

Zakat rules in Islam for money are as follows:

  1. Eligibility: Zakat is only required if a person owns a certain amount of money, known as the Nisab. The Nisab for money is the equivalent of 87.48 grams of gold or 612.36 grams of silver.

  1. Calculation: Zakat on money is calculated as 2.5% of the total amount of money owned.

  1. Timing: Zakat on money should be paid after a full lunar year has passed since the money was acquired. If a person earned and saved the money during the month of Ramadan, they’re obliged to pay Zakat during Ramadan the next year.

  1. Currency Conversion: If a person owns multiple currencies, they should convert the value of each one of them into the local currency at the current market rate and then add up the total value to determine the Zakat amount.

  1. Debts: If a person owes money to others, they can deduct the amount of the debt from their total wealth and savings before calculating Zakat. 

Zakat Rules for Property 

Zakat is only payable on specific categories of property. It is usually applied to properties that will be rented out or resold. In other words, zakat applies to all capital assets that create revenue. Firstly, you have to calculate all of your assets and cash. This will provide you with an accurate estimation of your Nisab.

Now, take the entire value of your assets and multiply it by 2.5% – the applicable percentage according to Zakat rules. Consider the following example to get a better idea.

Your property is worth PKR 15,000,000 in total. 

Zakat calculation: PKR 15,00,000 * 2.5% = PKR 37,500.

So, the zakat sum is PKR 37,500, which may be paid throughout the year.

Zakat Rules for Salary 

Zakat is not due if a Muslim’s income is less than the Nisab, which is the minimum amount of wealth. A Muslim must have to be eligible for Zakat. The amount of Nisab is based on the price of silver at the time and is changed every year. As of 2023, the nisab amount is approximately 610 USD. Zakat is due on any surplus income that exceeds this amount after deducting necessary expenses such as rent, bills, and basic living expenses.

According to Zakat rules, the percentage applicable on salary is 2.5% of the surplus income after deducting necessary expenses. For example, if someone’s annual income is $50,000 and their annual expenses are $30,000, the Zakat amount is calculated on the remaining $20,000.

Most of the time, zakat on a salary is paid once a year, but it can be paid more often if needed. It is also recommended to pay Zakat during the month of Ramadan, but it can be paid at any time throughout the year.

Zakat should be given to the poor and needy. It can be given to people directly, given to charities, or used to fund projects and programs in the community. Zakat can be given to those charity organizations that help people in need. Transparent Hands is one such organization helping deserving patients get quality healthcare across Pakistan. It’s important to note that Zakat is a personal obligation, and it is the responsibility of each Muslim to calculate and pay as required. 

Pay Zakat Online to Transparent Hands 

Transparent Hands helps and serves people who can’t pay for quality medical care and surgeries. Donate to us following the Zakat rules. The online donation method is as follows:

  • Visit the Transparent Hands website. 

  • Click on the “Donate Now” button on the homepage.

  • Select the “Zakat” option from the list of donation types.

  • Enter the amount of Zakat you wish to donate in the given field.

  • Choose the payment method you prefer, such as credit card, PayPal, or bank transfer.

  • Enter your personal information, including your name, email address, and phone number.

  • Follow the prompts to complete the payment process.

You will receive a confirmation of your donation via email.

Once you donate according to the Zakat rules and we receive your donation, Transparent Hands will use it to provide free surgeries and medical care to those in need. We also provide regular updates on our website and social media platforms, such as Facebook, Instagram, Twitter, and our YouTube channel. 

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