Definition and meaning of Zakat
In the Hadith, the Prophet (peace and blessings of Allah be upon him) said, “Whoever does not give Zakat, his wealth will eventually be destroyed.” (Bukhari). Zakat establishes social justice, provides assistance to the poor, and brings barakah to wealth. It is a symbol of a Muslim’s confidence and obedience to Allah.
It Provisions and Conditions for Obligation
Zakat is an obligatory act of worship in Islamic law. It is a Muslim who, according to the command of Allah, is required to give a certain amount of wealth to the poor and needy after a certain period of time. The most important condition for Zakat to be obligatory is that the person has attained the Nisab of wealth, that is, he has a certain amount of wealth. One of the other conditions is to be a Muslim, to be of full age (specifically, at least 18 years old), and to have wealth for a certain year. Through this, the wealth is purified by the mercy of Allah, and the social responsibility of a Muslim is also fulfilled.
On whom is obligatory?
Zakat is obligatory on the person who has the Nisab amount of wealth in his hands, and this wealth must be kept by him for one year. The Nisab amount is usually determined as 85 grams of gold or 575 grams of silver. This means that if a Muslim has this amount of wealth and it is kept by him for one year, then it is obligatory for him to pay Zakat. In addition, being a Muslim, being of legal age, being independent, and being self-sufficient (i.e., the wealth is completely one’s own, like a khatir) are also necessary conditions for Zakat to be obligatory.
Nisab and calculation
The Nisab of Zakat is a certain amount of wealth on which Zakat is obligatory. The Nisab is determined as the amount of gold and silver. Gold: 85 grams and silver: 575 grams. If a person has this amount of wealth, then Zakat is obligatory on it. At the time of calculation, the wealth is accumulated throughout the year, and if the conditions for paying Zakat are fulfilled on this wealth in one year, then Zakat must be paid. Generally, the rate of Zakat is 2.5% or 1/40 percent. Therefore, a person will pay 2.5% of his total wealth as Zakat.
Benefits and Importance
Zakat has many benefits and importance. It is helpful in alleviating poverty, because wealth is distributed to help the poor. Zakat establishes economic equality in society and strengthens social bonds. As a result, hostility and discrimination between the rich and the poor are reduced. In addition, Zakat is a means of achieving spiritual purification of the individual, because it helps to remove greed from the mind. It is possible to achieve the pleasure of God by standing by the distressed people of society and bringing a smile to their faces.
Purification of the soul
Zakat is an important means of spiritual purification. When a Muslim gives some of his wealth to the poor and needy, he reduces greed and selfishness in his heart. By giving Zakat, a Muslim purifies his soul and improves his humanity. It is also a way of expressing loyalty to Allah. By giving Zakat, a person achieves great moral excellence, through which his spiritual peace and fulfillment can come. It also teaches that the most important thing in life is equality and justice in the management of wealth.
Poverty Alleviation and Social Welfare
One of the objectives of it is to alleviate poverty. When the rich give a portion of their wealth to the poor and needy, it helps to improve their standard of living. Zakat establishes economic justice in society and creates opportunities for prosperity among the poor. It brings greater welfare to society because the basic needs of the poor such as education, medical care, food, and shelter are met. As a result, peace and prosperity prevail in society, and Islamic values are reflected.
Specified categories
There are eight categories specified for giving Zakat in the Quran and Hadith. These are:
Fakir (poor),
Miskin (helpless),
Zakat collectors,
Heartfelt,
Freeing slaves,
Debt,
In the way of Allah (for war or other work),
Those who are in danger on the way of travel.
Among these, it can be given, so that help can be received from various aspects of society.
Who can give?
Zakat can only be given to those who are Muslims, poor, and needy. In Islam, the purpose of it’s to help the poor of society, so only those who need it should give this donation. However, it is better to give priority to relatives when giving Zakat, as it is said in the Quran, “Give Zakat to those who are near of kin and those in need.” (Surah Al-Baqarah). It is possible to make the lives of the poor and helpless easier through Zakat.
Who cannot give?
There are some prohibitions when giving this. For example, it can never be given to infidels or non-Muslims. Since Zakat is an obligatory act of worship in Islam, it is prescribed only for Muslims. In addition, those who cannot be said to be entitled to their own wealth, such as immoral or unbelievers, are also not entitled to this. Before giving Zakat, one must be sure that the recipients are the true beneficiaries.
Punishment for not paying
It is an obligatory act of worship in Islam. If a person does not pay this despite it being obligatory upon him, he will face Allah’s prohibition and punishment. The punishment for not paying Zakat is clearly mentioned in the Quran and Hadith. In the Quran, Allah says, “For those who do not pay this, there is a burning torment.” (Surah At-Tawbah, 9:34). In the Hadith, the Prophet (peace and blessings of Allah be upon him) said, “Whoever does not pay Zakat, his wealth will be destroyed.” (Bukhari). In this world, this can cause financial hardship for the person, and in the Hereafter, Allah’s punishment may come, which will manifest as the torment of Hell.
Punishment according to the Quran and Hadith
The Quran and Hadith give strict warnings about the punishment for not paying. The Quran states, “For them is a prescribed punishment if they refuse to pay Zakat, and when they do not take it, Allah will punish them with their wealth.” (Surah At-Tawbah, 9:35). In a hadith, the Prophet (peace be upon him) said, “Whoever does not pay Zakat on his wealth, his wealth will eventually be destroyed, and he will be burned in the fire of Hell.” (Bukhari). This is a warning message that it is an Islamic obligatory act of worship, which will lead to severe punishment if he does not pay it.
Consequences in this world and the hereafter
Two consequences await one in this world and the hereafter if he does not pay Zakat. In this world, a person may suffer financial worries and losses due to not paying Zakat. His wealth may gradually decrease. In the hereafter, Allah has prepared a severe punishment for him due to not paying Zakat. He may face a painful punishment in Hell, which will never end. This is a serious matter for the individual and society because Zakat is a sacred duty, and not performing it is disobedience to Allah.
Zakat on Gold, Silver and Cash
To pay Zakat on gold, silver, and cash, one must first calculate its Nisab. The Nisab of gold is 85 grams of gold, and the Nisab of silver is 575 grams. The Zakat rate is 2.5%, or 1/40. So, if a Muslim has gold, silver, or cash and keeps it for a year, then 2.5% of it must be paid as Zakat. For example, if someone has 1000 grams of gold, then 25 grams of gold must be paid as Zakat. This is how the amount of Zakat due on his wealth is calculated.
How to calculate?
To calculate Zakat, you first need to determine the value of your wealth. This is calculated from all gold, silver, cash, and business assets. Once you know the total amount of wealth, you need to calculate 2.5%. If you hold this wealth for 1 year, then only 2.5% of the total wealth must be paid as Zakat. For example, if your total wealth is 100,000 taka, you will pay 2,500 taka as Zakat.
How much percent of Zakat should you pay?
The rate of Zakat is 2.5%, which is 1/40th. If you calculate the value of your total assets, then 2.5% of it must be paid as Zakat. This calculation applies to all assets, such as cash, gold, silver, business goods, and other assets. For example, if your total assets are 1,00,000 taka, then 2.5% Zakat will be 2,500 taka.
Zakat on Business Assets
To calculate Zakat on business assets, you must add up the value of all assets and products of the business and pay 2.5% Zakat on them. Business assets can include any goods, real estate, cash, and loans. When calculating this, if any of the business’s products have been in stock for more than a year, then Zakat must be paid on it. Zakat in the case of business must be calculated according to the Nisab, and Zakat must be paid as 2.5%.
How do I pay Zakat on business assets?
To calculate the Zakat on business assets, you need to add all the products and materials of the business, including cash. Then, you need to calculate the Zakat rate (2.5%) and pay Zakat. If the business has had assets for 1 year, then Zakat should be paid on them. If any product is stored for the purpose of sale, then Zakat should be paid on it. If Zakat on business assets is not paid, the business may be deprived of growth and may face losses from Allah.
Zakat calculation in case of profit and loss
Zakat should be calculated based on the profit and loss of the business. If the business makes a profit, then 2.5% Zakat should be paid on it. However, in case of loss, Zakat will not be paid. However, even if the business does not make a profit, Zakat should be paid on the stock of the business, which has been stored for more than one year. The issue of profit and loss is not important in determining the amount of Zakat; Zakat should be paid on the amount of wealth that is nisab.
Zakat on Agriculture and Animal Husbandry
There are certain conditions for Zakat in the fields of agriculture and animal husbandry. In crop production, if the amount of crops grown on the land for a year is the Nisab amount, then 5% of it must be paid. In the case of livestock, if the number of livestock kept throughout the year is a certain amount (for example, 30 cattle), then zakat must be paid on it. These conditions must be met in order to pay zakat on wealth earned from agriculture and animal husbandry.
Zakat on Crops and Fruits
In the case of agricultural production, Zakat must be paid on crops. If the amount of crops is the Nisab amount, then 5% of it must be paid. This rule also applies to fruits, and it is necessary to fulfill the responsibility of paying zakat on them. It is an act of worship that farmers perform honestly for the sake of Allah.
Zakat on Livestock
There is a certain amount for Zakat on livestock. If a person has 30 cattle, then zakat is obligatory on him. Generally, one calf is given as Zakat out of 30 cattle. In this case, the rate of Zakat is determined according to the number of animals and is observed according to Islamic law.
Difference between Fitra and Zakat
There is a difference between Zakat and Fitra. Zakat is an obligatory charity, which is a certain amount of money that has to be given from one’s wealth once a year. Fitra is a small amount of charity that is given to the poor before Eid al-Fitr in the month of Ramadan. Fitra is given by every Muslim family; it is calculated according to the number of family members and members.
Main Purpose of Zakat and Fitra
The main purpose of Zakat and Fitra is to eliminate poverty and establish equality in society. Zakat ensures the purity of wealth, and Fitra increases the happiness of the poor by helping them during Eid. Through both, it is possible to establish unity, prosperity and peace in society.
Amount and distribution method of both
The amount of Zakat is 2.5%, and it is distributed to various sectors such as the poor, the needy, the indebted, etc. Fitra is given in a fixed amount (a certain amount of rice, flour, or money per person), and it should be distributed before Eid.
The role of Zakat in modern society
Zakat plays a very important role in modern society. It helps in poverty alleviation, ensures economic equality in society, and improves the standard of living of the common people. Through Zakat, the poor and helpless become a core part of society, and their basic needs are met.
The role of Zakat in poverty alleviation
Zakat plays an important role in poverty alleviation, as it brings help to the poor. If it is distributed properly, poverty in society is reduced, and proper distribution of wealth is ensured.
The importance of Zakat in Islamic economics
The importance of Zakat in Islamic economics is immense. It establishes equality in society and ensures social justice through the redistribution of wealth. Zakat purifies wealth, and it acts as an economic safety net.
