How to Calculate Zakat in Islam: The foundation of the religion of Islam rests on 5 essential pillars. To be a true Muslim, it is necessary for a person to follow the path shown by his Lord and adopt the principles of his faith. There are pillars (Arkans) in Islam, which are the foundation of every Muslim’s life, due to which the life of a Muslim is complete. The five pillars of Islam include Shahada, Namaz, Zakat, Roza and Hajj. These five Arkans not only show the ways of worship, but also show the path of morality, rules and social service in life. From martyrdom to Hajj, every pillar brings the Muslim closer to Allah.
at this time Ramadan The month of is going on and in this month Muslims are engaged in worship. Along with praying, Muslims keep fast for 29-30 days. Fasting in Ramadan is a duty on every Muslim. Similarly, Zakat given in the month of Ramadan is also considered a duty in Islam, which is mandatory for every capable Muslim. There are many questions in the mind regarding Zakat that how it is given, what percentage is required to be given and who is entitled to it. We will know the answers to all these questions from Islamic scholar Mufti Salauddin Qasmi in this article.
Five Pillars of Islam
- Shahada (testimony of faith):- Believing in Allah as one and Prophet Muhammad (PBUH) as his messenger.
- Salah (Namaz): To offer Namaz five times a day.
- Zakat (charity): Donating a portion of one’s earnings to help the poor.
- Saum (Fasting): Fasting in the month of Ramadan.
- Hajj (pilgrimage): Traveling to Mecca once in a lifetime (if able).
Also read – Why is it considered wrong for Muslims to give or take interest? Know what Islam says
What is Zakat?
According to Islamic belief, giving a part of one’s wealth to a Muslim fakir (needy) which has been determined by Shariat for Allah, is called Zakat. Zakat is an obligatory donation for every Muslim, which is required to be given by an economically capable Muslim i.e. a financially independent Muslim. Zakat is a duty on every Muslim and it is a part of the Muslim’s hard-earned and honest earnings. The purpose of Zakat is to reduce economic inequality in the society and to help the needy.
Zakat is obligatory for every Muslim
Since Zakat is one of the five fundamental pillars of Islam, it is a duty on every Muslim and cannot be skipped under any circumstances. A Muslim whose income or property exceeds a certain limit as per Shariat. This limit is called ‘Nisab’. If someone has assets more than the Nisab, then it becomes obligatory to pay Zakat on him. Zakat is obligatory on three types of goods – first, cash in the bank or at home. Second on gold, silver and their jewellery. Third, Zakat is obligatory on trading goods. Every Muslim should set aside 2.5% of his income for Zakat.
Zakat mentioned in Quran
Zakat has been mentioned in the Quran, the holiest book of Islam. In Surah At Touba (9:30) of the Quran, eight categories have been mentioned to which Zakat can be given. These include the poor, the needy, Zakat payers, new Muslims, those who are slaves, those in debt, those who are in the path of Allah and stranded travelers. Apart from this, Zakat is mentioned in Surah Al Muzammil (72:30) and Surah Al Mujadila (58:13) of the Quran.
- On whom does it apply:- On cash, gold, silver, shares and business items.
- On whom it does not apply:- On residential accommodation, used car, clothes or items of daily use.
- To whom to give:- Can be given to the needy, poor, debtors and travelers, but not to parents or children.
- Time:- It is taken out exactly one year (usually in Ramadan) from the time the Nisab is completed.
Also read – Which dates did Prophet Muhammad eat? Know the connection between Ramadan and dates
Necessary condition for paying Zakat
Muslim:- The person should be a follower of Islam.
Ownership and Control:- The property should completely belong to the person, it should be easily accessible i.e. it should be under the control of the owner so that he can sell it as per his wish.
Nisab (limit):- The wealth must be equal to or greater than a specified minimum price, which is usually equal to 87.48 grams of gold or 612.36 grams of silver.
Haul (passage of time):- The person should have that wealth for one full lunar year.
Nature of Zakat:- The asset must have the ability to grow or expand (e.g. cash, business assets or animals).
punishment for not paying zakat
In Sahih Bukhari’s Hadith number 1403, Prophet Muhammad said – If Allah has given wealth to a person and he has not paid Zakat on that wealth, then on the Day of Judgment, his wealth will take the form of a very poisonous snake, there will be two black points near his eyes like those of a snake. Then that snake will catch hold of that person with both his jaws and will say that I am your property, which you had saved.
Actually, Zakat can be given at any time of the year. But it is considered best to give it in the month of Ramadan. Zakat is given only once a year. Zakat should always be given with an open heart and happily. By giving Zakat one gets the approval of Allah. Zakat money should not be used for any wrongdoing. Zakat should be paid before Eid ul Fitr prayers.
What percentage of Zakat is deducted from earnings?
To pay Zakat, it is necessary to donate (40th of the total income) if the wealth/property exceeds Nisab (minimum wealth – equal to 87.48 grams of gold or 612.36 grams of silver) for an Islamic year. The method of calculating Zakat is very easy. First of all, add up all your Zakat eligible assets. Then reduce the debts or bills that have to be paid within a year. Of the remaining amount, 2.5 percent will have to be devoted to Zakat. For example, if your net worth is Rs 5 lakh, then Zakat is Rs 12,500.
How to calculate Zakat?
- Calculate the total value of cash, bank deposits, bullion, investments and trading stocks held by you for the last one year.
- If you have any debt or bills due within a year, deduct it from your total assets.
- If the remaining amount exceeds the minimum Nisab limit (equivalent to the value of 612.36 grams of silver), then Zakat is obligatory on you.
- Finally, withdraw 2.5% of the remaining income for Zakat.
- For example – if you have savings of Rs 5 lakh in a year, then 12,500 Zakat will have to be paid on it.