Zakat is an Islamic financial obligation that refers to individuals’ commitment to making donations of a certain amount of their wealth each year to humanitarian activities. Zakat is one of Islam’s five pillars and a compulsory process on a certain amount of earning. Zakat should not be mixed with sadaqah.
“You shall observe the Salah and give the obligatory charity (Zakat), and bow down with those who bow down.” (Qur’an 2:43)
How Zakat Work:
Belief systems provide a clear explanation of the required zakat threshold that should be dispersed to the less privileged. It normally totally depends on whether the wealth comes from farm produce, livestock, business operations, paper money, or precious metals, such as gold and silver.
Zakat is based on wealth and the value of the property. The common actual deposit for eligible individuals is 2.5 percent or 1/40 of the total Muslim earnings and income.
Zakat to whom paid:
According to Quran, there are seven types of needy to whom we paid Zakat.
- The poor
- The utmost needy
- Travelers who are in demand
- The person who’s in debt
- The person in slavery against their consent
- New Muslims
- Those in the cause of Allah
Zakat is often compensated out at the finish of the year when any surplus wealth calculations have been made. The beneficiaries are the needy and underprivileged, suffering Muslim conversions, enslaved persons in liabilities, military personnel working to defend the Muslim community, and those stranded on their journeys. The zakat collectors are also compensated for the work they do. Zakat is given to the neediest person which Quran already determines.
Time of Paying Zakat:
Zakat is entirely dependent on a full lunar year, and as such, most Muslims pay for it towards the end of the year. Zakat can be paid at any time, many of us like to pay Zakat during the holy month of Ramadan.
Zakat vs Nisab:
Nisab is a word often used along with zakat. It is a lower limit, which refers to the minimum amount of wealth and belongings that a Muslim has to own before even being obliged to pay zakat. In other words, if personal wealth is below the Nisab in a lunar year, no zakat is due for that period. In our Holy Qur’an, the Nisab value is explained as 612.36g of silver or 87.48g of gold but in current days it becomes different because in now a day’s silver Nisab is lower than gold.
Zakat Due on :
Zakat is due on the following things.
- Save Money either in a bank or home
- Value of Gold and Silver
- Given out loan
- Investment either in pension stock or shares
- Agriculture productions
- Property owned as an investment
Nisab for Zakat:
Firstly, the Nisab is limit to pay Zakat. It is a threshold on that zakat will be paid. Nasab directly depends on the current value of things like in the case of gold and silver Nasab depends on the current value of silver and gold. one should calculate the Zakat Nasab by online Zakat Calculator in local currency.
The Holy Prophet SAWW has set Nisab. Anybody Zakat amount should be determined 2.5 % on the amount of accumulated wealth throughout the year. For example, your assets have amounted to £10,000 you would have to pay £250 as Zakat. For an accurate finding of Zakat, consult the online Zakat calculator. We calculate zakat on different parameters, On Silver, the value is 612.36g, and in the case of Gold, the value is 87.48g.
Zakat on money has become mandatory when the amount of money if either carried in the bank or on hand, is met by Nisab. Also, it would include money held in the pension and pension funds. The proportion of Nisab payable as Zakat shall be one-quarter of one-tenth (2.5 percent) of the total money of its property after one lunar year.
These days in which currency rate is always under ups down. We have to use the Online Zakat calculator for accurate zakat calculation according to local currency. These days Zakat can be preferably calculated by our handy Zakat calculator, which is designed to calculate the amount of zakat in different currencies, it would be preferable to work in less time. Our Zakat calculator provides accurate results.