Zakat is mandatory on who?
Zakat is mandatory upon all sane, mature Muslim who have assets and meet the threshold (Nisab) after a lunar calendar.
Who meets the threshold (Nisab)?
An individual who possesses Zakatable assets which meet the threshold (Nisab) after deducting all liabilities will be considered to have met the Nisab.
What does Nisab mean?
Nisab is a legal threshold set by Sharia. An individual who holds assets equivalent to the Nisab must pay Zakat annually.
What is Nisab set at?
Nisab is set on the value of 612.36 grams of silver.
How much will need to be paid?
It is set at 2.5% of the total net asset.
If the wealth fluctuates throughtout the year, what should one do?
It is irrelevant whether the wealth fluctuates throughout the year. Only in the event that one becomes insolvent, will the Nisab become inapplicable.
Does one need to pay Zakat on one’s house and car?
No Zakat is applicable on personal belongings which constitute daily living necessity i.e. house, clothes, utensils, furniture, car, household appliances which would render ones normal day-to-day living into difficulty.
Does one need to make intention before paying Zakat?
It is critical that one inteds to pay Zakat, as it will render it invalid if one does not. It is a prerequisite of a complete discharge of Zakat.
Can Zakat be paid by a husband for his wife?
It is permissible to discharge Zakat on behalf another from their own wealth so long as the other party explicitly consents and is aware.
Is Zakat mandatory on precious metals such as gold & silver in personal pocession?
Zakat is mandatory on gold and silver that is owned by an individual whether in the form of jewellery or solid.
Is Zakat payable on cash that is held in bank accounts?
Zakat is mandatory on cash whether in personal possession or held in a bank account.
Is Zakat payable on monies that have been loaned to someone else?
It is mandatory on monies that has been loaned and that the chances of the loan returned is high.
If one is in debt; does the person deduct debts whilst calculating Zakat?
One can deduct the debt from Zakat total if the debt is to be paid in full within the next 12 months, this also includes debts that are being paid in instalment; then one can deduct 12 months debt. Those debts that are not required ot be paid within the 12 months, then one cannot deduct from the Zakat.
Is Zakat mandatory on Welfare benefits?
One must pay Zakat on welfare benefits such as Working Tax Credit, Child Tax Credit, Child Benefits and other forms of benefits.
Is Zakat mandatory on businesses?
Zakat does not apply to fixed assets in a business but it does apply to business stick which should be calculated according to the price of the goods.
Is Zakat applicable on shares?
The value of shares which are purchased to resell are Zakatable.
Is Zakat applicable to manufacturing goods?
For manufacturing businesses Zakat is payable on finished goods valued at their sale price and all unfinished goods at their market price.
Those who have not paid Zakat for years due to ignorance or negligence, what should they do?
Those who failed to file their Zakat for the above reasons, they should estimate the years that we missed and also workout the net assets for each year and pay Zakat accordingly. One should also repent and seek forgiveness from Allah SWT the most merciful.
Who is eligible to receive Zakat?
A recipient of Zakat must be a needy person who does not have assets which is equal to the value of Nisab nor do they have anything in excess of their personal needs and or a debtor whose liabilities exceed Zakatable and surplus assets.
Zakat cannot be given to construction projects, wealthy people, non-Muslims, or the descendants of Abbas, Harith, Ja’far and Aqeel (RA). Furthermore, one cannot hand Zakat to one’s parents, grandparents, children or spouse. However, one can give Zakat to one’s siblings those who meet the criteria of receiving Zakat.
