Frequently asked Questions Pertaining to Zakaat

[ummtaalib]

Q: Upon whom is Zakaat compulsory?

A: Zakat is compulsory on every sane, mature Muslim who is owner of Zakātable assets equivalent to the Nisaab after a passing of a lunar year.

 

Q: Who is regarded to have Nisaab?

A: A person who has Zakātable assets equivalent to or more than the Nisaab after deducting liabilities will qualify as a Nisaab holder.

 

Q: What is Nisaab?

A: The Nisaab is a threshold. One who possesses Zakātable assets equivalent to the Nisaab amount, will be regarded as a Nisaab holder and will have to check one lunar year later if he still possesses Nisaab amount to pay Zakaat.

 

Q: What is the value of Nisaab?

A: The Nisaab is the value of 612.36 grams of silver.

 

Q: How much will I have to pay?

A: One will have to give 2.5% of one’s total net assets.

 

Q: What if one’s wealth fluctuates during the course of the year?

A: It makes no difference whether one’s wealth increases or decreases during the course of the year. Only if one becomes insolvent then one’s Nisaab date will expire.

 

Q: Is there Zakaat on one’s house and car?

A: There is no Zakat on personal items which take the form of living necessity. e.g. a house, clothes, utensils, furniture, car and all household appliances without which life would fall into difficulty etc.

 

Q: Is intention necessary?

A: Intention at the time of giving Zakaat is a pre-requisite for the valid discharge of Zakaat.

 

Q: Can a husband pay Zakaat on behalf of his wife?

A: It is permissible to discharge somebody else’s Zakaat from one’s own wealth on condition one has approval and acknowledgement from the other party.

 

Q: Is Zakaat compulsory on personal gold?

A: Zakaat is compulsory on gold & silver in one’s ownership for whatever reason and whichever form.

 

Q: Is Zakaat binding on cash in a bank account?

A: Zakaat is obligatory on all cash whether in one’s physical possession or in a bank account.

 

Q: Do I have to pay Zakaat on money I have given to a brother as a loan?

A: Zakaat is compulsory on debt receivables arising from forwarding a loan or selling stock on credit. The total outstanding balance will be added to one’s gross assets.

 

Q: I am in debt; do I deduct my debts when calculating Zakaat?

A: Debts are deductible from your Zakatable total if they are to be repaid in full within the next 12 months.

 

Debts not repayable at all in the next 12 months are NOT deductible.

 

If debts are payable by instalment, then 12 months debt is deductible.

 

Q: I have a business, on what value will I calculate Zakaat for my stock?

A: One will pay Zakaat on the current market value of the stock of trade. Market value refers to the price that the consumer (i.e. the public) generally pays to obtain the item regardless of whether one purchased it for a higher price or lower price and regardless of whether one is selling it for a higher price or lower price. 

 

The one who is involved in a retail business will calculate Zakat according to the retail market value of the stocks. The one who is involved in a wholesale business will calculate his Zakat according to the wholesale market value of the stock. The one who sells goods in retail and wholesale will calculate Zakat according to a value that is between the retail and wholesale value. (Jadeed Fiqhi Masail, Vol.1 Pg.71)

 

Q: Do I have to pay Zakaat on shares?

A: The value of shares purchased to resell is Zakātable.

 

Q: We manufacture goods. Do we have to pay Zakaat on those goods?

A: For businesses involved in manufacturing goods, all finished goods must be valued at their sale price, and all unfinished goods at market price.

 

Q: I have not paid Zakaat for years. What do I do?

A: If one failed to give Zakaat for previous years, one should estimate how many years were missed and how much one’s nets assets were each year and give Zakaat accordingly.

 

Q: Who can I give Zakaat to?

A: Zakaat can only be given to either a needy Muslim who does not own in excess of his personal needs any surplus asset that is equal to the value of Nisaab or a debtor whose liabilities exceed Zakātable and surplus assets.

 

Zakaat cannot be given to construction projects, rich people, non-Muslims or the descendants of ‘Abbas, Harith, Ja’far and Aqeel Radhiallahu anhum.

 

One cannot give Zakaat to one’s parents, grandparents, children or spouse.

 

It is permissible to give Zakaat to one’s needy brother or sister.

 

Jamiatul Ulama (KZN)

Council of Muslim Theologians

[ummtaalib]

Part 2

 

Q. When we give Zakaat to our relatives is it essential to inform them that it is from the Zakaat money?
Because when we inform them they are reluctant to take it. Hence please explain.

 

A. It is not necessary to inform them that it is Zakaat. As long as they are deserving recipients of Zakaat, the Zakaat will be discharged. You should note that you cannot give Zakaat to your ascendants, descendants or spouse.

 

Q. If I bought a property without a specific intention of reselling and after a few Months or years I decide to sell the property, do I have to now pay Zakaat on the property?

 

A. In principle, property purchased with the specific intention to resell at the time of sale is Zakaatable as the property will be considered as stock in trade.

However, if there was no specific intention to resell the property at the time of sale but an intention to resell the property was made after the sale, then the property will only be Zakaatable if the intention to resell the property is tied with taking actionable steps in selling the property, for e.g. by listing or advertising the property. (Al-Fiqhul Islaami Waadillatuhu 3/1868)

 

By merely making an intention of selling the property without taking actionable steps in selling the property, the property will not be Zakaatable, for e.g. by having an intention to resell the property only if a buyer is found. (Shaami 1/128)

 

Q. Salaams. If my child who is 1 year old was given a gift of a Kruger coin by his grandparents, then who pays the Zakaat on this? The non-baaligh child or his parent? Jazakallah

 

A. If your child received a Kruger coin as a gift, the Kruger coin belongs to them. Hence, Zakaat is not obligatory on them as they are not mature (Baaligh).

 

Therefore, your child will not have to discharge the Zakaat of it and neither will you have to on their behalf until they become mature (Baaligh) and fulfil the criteria of discharging Zakaat.

 

Q. If a person did not pay Zakaat on lost or stolen wealth, is he liable to pay Zakaat on the lost and stolen wealth? If the wealth was not lost or stolen, it was spent after Zakaat on that wealth become compulsory on him, does he still have to pay its Zakaat? Is there any difference between the two of them?

 

A. In principle, Zakaat does not remain compulsory on wealth that was lost and stolen after Zakaat had become compulsory upon it (Halaak). However, Zakaat remains compulsory upon wealth that was used or spent (Istihlaak) after Zakaat became compulsory upon it.

 

The difference is that in the case of wealth being lost or stolen, there remained no means of benefitting from it, thus Zakaat does not remain compulsory upon it. Whereas, in the case of wealth being used or spent after Zakaat became compulsory upon it, a person had the means of benefitting from it and hence, Zakaat remains compulsory. (Shaami 2/361)

 

Note: One should discharge his/her Zakaat timeously and not use the excuse of wealth being lost or stolen without valid grounds to avoid the discharging of Zakaat. In fact, to delay the discharging of Zakaat without a valid reason is sinful.

 

Q. A woman lost her jewellery 20 years ago. Whilst moving houses, she found that very same jewellery which she had lost. Does she now have to pay Zakaat on the lost jewellery for the past 20 years?

 

A. In the enquired case, if the woman lost her jewellery 20 years ago and had no hope of finding it, Zakaat on the jewellery was not compulsory upon her for the past 20 years. (Shaami 2/226)

 

However, since she has now found her lost jewellery, Zakaat will be compulsory upon her only for the current year if she is paying zakat.

 

Q. A person did not pay Zakaat on her jewellery for the past ten years. Now, all the jewellery has been stolen. Does it still remain compulsory upon her to pay Zakaat on the jewellery for the past ten years?

 

In principle, Zakaat does not remain compulsory upon wealth that has been stolen or lost. Hence, if a person did not discharge the Zakaat on her jewellery and it was later stolen or lost, the Zakaat on that jewellery will no longer be compulsory to discharge. (Shaami 2/361)

 

Q. Can we use Zakaat money to assist in the burial and funeral expenses of the deceased who did not own anything and did not leave anything for his heirs? The deceased family does not own anything as well?

 

One of the primary requisites of discharging ones Zakaat is to discharge it to an eligible recipient of Zakaat by making him the owner of it i.e. Tamleek (giving him full ownership of it) must take place.

 

A deceased person does not have the capacity to take ownership, hence the requirement of Tamleek is not fulfilled irrespective of whether he was a Zakaat recipient or not. Hence Zakaat cannot be given to the deceased for his/her funeral and burial expenses.

 

However, if the deceased’s family members qualify as recipients of Zakaat, then a person may give Zakaat to them and they may, in turn, use it for the funeral and burial expenses of the deceased if they wish. (Hindiyyah 6/392)

 

Jamiatul Ulama (KZN)

Council of Muslim Theologians

[ummtaalib]

Part 3

 

Q. Zayn gave Ashraf his Zakaat to give to Jamaal but Ashraf gave Zayn’s Zakaat to Ali. Is Zayn’s Zakaat valid?

 

If Zayn appointed Ashraf as his representative to discharge his Zakaat to Jamaal but instead, Ashraf discharged it to Ali, Zayn’s Zakaat will not be discharged and Ashraf will be responsible in discharging Zayn’s Zakaat to Jamaal. (Fataawa Mahmoodiyyah 9/494/495)

 

Q. Can a person build a house and give it as Zakaat to a Zakaat recipient?

 

It is permissible to build a house and give it with the intention of Zakaat to an eligible recipient of Zakaat. (Ahsanul Fataawa 4/300) 

In doing so, the market value should be realised in calculating a persons discharged amount of Zakaat.

 

Q. Is it permissible to give Zakaat to one’s father-in-law, mother-in-law, son-in-law, daughter-in-law? Can one give Zakaat to ones brothers, sisters, uncles and aunts?

 

It is permissible to give Zakaat to ones In-laws i.e. father-in-law, mother-in-law, son-in-law’s, daughter-in-law’s and so on. It is also permissible to give Zakaat to ones brothers, sisters, uncles and aunts. In fact, ones close family relatives should be given preference over others in discharging Zakaat.

Zakaat cannot be given to ascendants(e.g. parents, grandparents), descendants (e.g. children, grandchildren) and spouse.

 

Q. I have a small business and I have a few staff. I cannot afford to pay all my staff their salaries. Can I use Zakaat money to pay them their salaries?

A. Zakaat money cannot be used to pay an employee his salary. If an employee is an eligible recipient of Zakaat, he may be assisted with Zakaat apart from his salary but Zakaat cannot form part of his salary.

Keeping in mind the rights of employees and the smooth running of a business, employers should employ a sustainable amount of employees and not more than they can manage.

Q. I have a diamond necklace which my husband gave me as a gift. Do I have to pay Zakaat on it ?

 

No. There is no Zakaat on precious stones or metals besides gold and silver unless they have been purchased with the intention of resale. If your diamond necklace if for personal use, there is no Zakaat on the diamond itself. However, if the necklace is of gold or silver, Zakaat will have to be paid on the gold or silver content only.

 

Q. Ramadaan will be soon and I usually calculate my Zakaat in Ramadaan. I would like to know how to calculate in on a property. I have invested 200 000 in a property as a shareholder. From this I collect a rental every month. How do I calculate Zakaat on this property?

 

There is no Zakaat due on property that has not been purchased with the intention of resale (trade). In your situation, since you have purchased a share of property as an investment and not for resale, there is no Zakaat due on your share of the property itself. However, the  dividends that you receive will be subject to Zakaat if you have saved up these funds.

 

Whatever you have saved up from these dividends will be subject to Zakaat like the rest of your wealth (2.5%) on your due date for Zakaat.

 

If you have used up all the  funds from these dividends before the due date of Zakaat, there is no Zakaat on these funds. 

 

Q. Zakaat has been due to me in Ramadaan. I have been giving Zakaat on R 20 000.One month ago i have received R10 000. How much should I pay this year in Ramadaan.

 

If you already possess the Nisaab amount, the amount you receive during the year will be added to your wealth subject to Zakaat even though one complete year has not yet passed on the recently received funds. Therefore, if you possessed R20 000 from last Ramadaan and you now received another R10 000 and you have this amount in your possession on the due date of Zakaat, you will pay Zakaat on R30 000. (Tabyinul Haqa’iq, Vol: 1, Pg: 272)

 

Jamiatul Ulama (KZN)

Council of Muslim Theologians