The Ramadan fasting month is in the last few days, with many Muslims around the world preparing to realize another essential pillar of their faith.
Zakat is a mandatory form of Islam’s charity, aimed at supporting the poor and promoting economic equality.
This visual explanator will answer seven general questions about Zakat and help you understand its purpose, calculations and benefits.
What are Zakat and Sadaka?
Zakat is one of the five pillars of Islam and is the core act of worship. The word Zakat means cleansing or growth, and is commanded in the Quran as a means of purifying wealth, promoting social justice, and helping those in need.
Zakat is essential for Muslims who meet financial thresholds known as Nisab and are given annually at a fixed rate of 2.5 (one-fourth) of their wealth. More on how this is calculated later.
Sadaka, on the other hand, is a voluntary charity with a money given at any time.
Who should give the cut?
Zakat is mandatory for adult Muslims whose wealth exceeds the NISAB threshold and requires a minimum amount to be entitled to pay Zakat.
The NISAB is equivalent to 85gm (3 troy ounces) of gold, or approximately $9,000 based on current market prices.
In addition to the gold standard for determining NISAB amounts, there is also a silver standard. Nisab, based on silver, corresponds to 595gm (19 troy ounces) of metal. This will address a variety of economic situations and ensure Zakat is accessible and relevant to a wide range of people.
If Muslim wealth exceeds this threshold for a full month year, they must pay zakate.
What are the different types of Zakat?
There are two main types of Zakat: Zakat Al-Mal and Zakat Al-Fitr.
Zakat al-Mar, meaning “the cut of wealth,” is the most commonly known Zakat. This is an obligation to require Muslims whose wealth exceeds the NISAB threshold to donate 2.5% of their assets each year.
Zakat Al-Fitr is an essential charitable donation of food before Eid’s prayer, marking the end of Ramadan. It is given to help those in need to celebrate Eid. The amount generally corresponds to the cost of a person’s meal.
Which assets are Zakatable?
Zakat must be paid for assets and savings and must be held for resale or profit, including:
Zakat is not necessary for assets used in daily life, such as:
How is Zakat calculated?
The standard Zacht rate is 2.5% (1/40) of eligible wealth.
For example, if Zakat’s responsibility is $10,000, the deadline is $250 (10,000 x 2.5% = $250).
Who can receive the Zakat?
Zacat is designed to help alleviate poverty and help the less fortunate. Therefore, it must be given to Muslims who meet the criteria for lack of wealth. The Quran specifies eight categories that are eligible to receive Zakat.
Poor people – Poor people – Poor people – Those who have some resources but are not sufficient to be the manager of a stable life – The individuals or organizations responsible for collecting and distributing new Muslims in Zakat – Those who are leaning towards Islam who need converts or debt financial support – Those who receive financial support while receiving religious support while receiving religious support cannot burden those who are burdened with debt. Captives and slave efforts – historically used to free people who have been enslaved. Currently applied to modern equivalents such as bonded labor.
Zacat cannot be given to improvised families who are considered their financial liability (parents, children, spouses, etc.). It cannot be given to those who have wealth beyond the NISAB threshold.
When should Zakat be paid?
Many people choose to pay the spiritual reward for Zakat during Ramadan, but can be given at any time within a year.
If Muslim wealth exceeds the NISAB threshold, if they own this wealth for the full month year (known as HAWL), they will have to pay zakate.
For example, if someone’s wealth exceeds the NISAB threshold for a year, they are owed to pay Zacut.
However, if your wealth falls below NISAB in that year, you do not need to pay Zakat.
For example, if someone’s wealth has exceeded the NISAB for several months, but then falls under it before the end of the year, you don’t have to pay Zacut. Only when their wealth is exceeded Nisab for a continuing month’s year would they be obligated to pay Zakat.
If someone misses a Zakat payment in the past few years, they have to calculate it and pay retroactively.
Zakat can be given directly to those in need, or through trusted charities or organizations that distribute accordingly. It is encouraged to help people nearby, but if there is a greater need, it can also be given internationally.
By requiring wealthy individuals to give a portion of their assets, Zacat prevents wealth from accumulating in the hands of fewer people, encourages a more equitable distribution of resources, promotes economic balance, and reduces income inequality.
Source link
