What is Zakat
Zakat, the giving of alms to the poor and needy, is one of the five pillars of Islam (the others are declaration of faith, prayer, fasting in Ramadan and Hajj). It is obligatory upon every adult Muslim of sound mind and means. Donate your zakat today with Islamic Help and empower those in need. The individual must own a specific amount of wealth or savings (after living costs, expenses etc). This is referred to as Nisaab and is the threshold at which Zakat becomes payable. The amount of Zakat to be paid is 2.5% of Nisaab .
Is Zakat obligatory?
Zakat is obligatory on every Muslim who is of sound mind and able means, possessing wealth above the Nissab – this is the threshold or minimum amount of wealth a Muslim must possess before Zakat becomes payable. Whilst the value of eligible goods and items can vary throughout the year, Zakat is based on the Nisaab at the end of the individual’s full Islamic (lunar) year.
Why do we donate Zakat?
Zakat is not charity, It is not voluntary charity not a tax but an obligation. By giving Zakat, a Muslim is acknowledging that everything we have is Allah’s and we do not really own it, and we should use it to remember Allah and help those who are in need. It is also an act to help free us from excessive desire and greed, learn self-discipline and honesty.
When should we donate Zakat?
You should record the Islamic date on which you first became the owner of Nisaab – if, on the same date the following lunar year, you are still the owner of Nisaab, you will be obliged to pay Zakat. Many Muslims choose to give it during Ramadan as the rewards for good deeds performed in Ramadan are greater than in any other month.
Who can receive Zakat?
Zakat can only be paid to specific beneficiaries and projects. The Qur’an mentions eight groups of people on who Zakat should be spent: (Surat At-Tawbah 9:60) 1. The Fuqara’ (the poor) 2. Al-Maskin (the needy) 3. Aamileen (Zakat collector) 4. Muallafatul Quloob (poor and needy who recently converted to Islam) 5. Ar-Riqaab (slaves; Zakat can be used to purchase their freedom) 6. Ibnus-Sabeel: A stranded traveller in need of financial assistance. 7. Al Ghaarimeen: A debtor 8. Fi Sabeelillah: Those who are away from home in the path of Allah
How is Zakat calculated?
Assets to include in your Zakat calculation are cash (in hand, in bank accounts or money lent to someone), shares, pensions, gold and silver. Personal items (your home, furniture, cars, food, clothing) are not included in Nisaab. There are two measures to determine Nisaab – gold (85 grams, or its cash equivalent) or silver (609 grams, or its cash equivalent). Price of Gold per gram as of 24/04/2021: 73.71 AUD (per g), the nisaab is 6,265.35 AUD. Price of Silver per gram as of 24/04/2021: 1.0800 AUD (per g), the nisaab is approximately 657.52 AUD. Have you tried our Zakat Calculator?
How is Nisaab measured?
There are two measures to determine Nisaab – gold (85 grams, or its cash equivalent) or silver (609 grams, or its cash equivalent). Many scholars recommend using silver as it means more people qualify for paying Zakat, which will help support even more people in need. Price of Gold per gram as of 24/04/2021: 73.71 AUD (per g), the nisaab is 6,265.35 AUD. Price of Silver per gram as of 24/04/2021: 1.0800 AUD (per g), the nisaab is approximately 657.52 AUD Assets to include in your Zakat calculation are cash (in hand, in bank accounts or money lent to someone), shares, pensions, value of crops, money from property investment and gold and silver. Personal items, such as your home, furniture, cars, food or clothing are not included in Nisaab. Zakat can be paid in full at one time, or as regular monthly payments. Use our Zakat calculator to find out how much Zakat you have to pay. The nisaab value is based on the value of silver.
Should I use gold/silver to calculate Nisaab?
While it is permissible to use either gold or silver to calculate Nisaab, many scholars recommend using silver as more people paying Zakat means more of the poor and needy benefit.