Zakat concept simplified

Zakat concept simplified

 

Part-1
AL-QURAAN: “And those who hoard up gold and silver and do not spend it in Allah’s way – so they give the glad tidings of a painful punishment.” (9:34)
HADITH SHARIEF: “Protect your property against harm by paying Zakat.”
1. When Zakat (paying alms) was made compulsory a farz in Islam?
A. During the holy month of Ramzan in 2nd Hijri.
2) Who has to pay Zakat?
A. Whose property has reached the amount of nisaab.
3) What is Nisaab in Islam?
A. Nisaab means borderline between richness and poverty prescribed by Islam.
4. Who is Saheb e Nisaab?
Or
For what property or amount one falls under the category of Zakat?
A. If one possesses 93 grams of gold(=7.5 toola*12.4) Or 651 gram of silver(52.5 toola*12.4) Or cash/bank balance around ₹27,000 Or commercial property worth ₹27,000.
[Note: Calculated on silver rates as of 1st Ramadan.]
If gold or silver or commercial property remains in one’s possession for one complete Islamic year from the day it was weighed or the value reached the amount of nisaab, then zakat becomes Farz.
5. What is meant by the completion of one full year on Nisaab?
Suppose a person becomes Sahib e Nisaab (say on 1st Ramadan 1439Hijri) then Zakat will become FARZ only on completion of 1 lunar year (i.e. on1st of Ramadan 1439 Hijri) on that.
6) Which year is meant by completion of full one year on Nisaab?
A. Completion of full one year on Nisaab means the lunar year i.e. on whichever date and time of Arabic (lunar) month one becomes solvent the very date and time of the Arabic month (next year) is Zakat year for him regardless of the beginning of financial or income year.
Example: 1st Ramzan 1439 hijri a person gets 27000 cash! Now he becomes sahib e nisaab but zakat is still not FARZ upon him. Because he is waiting for the completion of 1 Islamic year on that amount.
* Now after 1year that is 1st Ramadan 1439 Hijri, ZAKAT becomes FARZ on him.
If during the course of 1 year the minimum condition-amount (RS 27000) did not reduce instead there was an increase in the amount and it became 40000.
Now zakat will be calculated on Rs 40000.

Zakat concept simplified part-5
16) If a person has a total property of 5lakhs but also has a debt of 3lakhs. In such situation how is Zakat calculated?
-First the debt is subtracted from total of what one has of gold, silver and commercial property/cash. Then if the remainder amount makes him sahibe nisaab then Zakat is given for that remaining amount.
Example: For the above situation 5lakhs-3lakhs = 2lakhs! Zakat to be paid for Rs 2lakhs.
17) Should the Zakat be paid for other savings apart from property and other assets?
-Yes Zakat is farz for other savings like LIC/PF/GFF/PLI/RD/KGID/ULID/ pension schemes and for all savings which is paid in premium/cash/salary deductions etc.
18) Will Zakat be due on merchandise which is exchanged for other thing during the year?
– Exchange of merchandise or gold or silver for the same kind like jewellery or for the other kind during the Zakat year will not remit Zakat but it will remain due.
18) Recipients of Zakat:
-It is better that Zakat should be given to local poor and needy people.
-It is more preferable to give Zakat to one’s relatives than to other people. In that case he will receive a two-fold reward, one of giving Zakat and the other of kind treatment with relatives.
-Those living in absolute poverty
-Those restrained because they cannot meet their basic needs.
-The zakat collectors themselves.
-People whom one is attempting to free from slavery or bondage. Also includes paying ransom or blood money
-Those who have incurred overwhelming debts while attempting to satisfy their basic needs
-Those working in Allah’s way (Fī Sabīlillāh).
-Children who lay helpless on the streets/Travelers.
19) Whom zakat cannot be given?
The recipient of Zakat cannot be from the descendant of Prophet Mohammad ﷺ i.e. from Hashmi Clan(Banu Hashim tribe).
-Zakat cannot be given to parents and grandparents. In the same manner one’s children and grandchildren cannot be given Zakat.
-Zakat contributions cannot be given to such institutions or organizations who do not give the rightful recipients possession of Zakat, but instead use Zakat funds for constructions investment or salaries.
Thanks & Regards,

 

 

Zakat concept simplified
Part-9
* If a person has a total property of 5lakhs but also has a debt of 3lakhs. In such situation how is Zakat calculated?
-First the debt is subtracted from total of what one has of gold, silver and commercial property/cash. Then if the remainder amount makes him sahibe nisaab then Zakat is given for that remaining amount.
Example: For the above situation 5lakhs-3lakhs=2lakhs!
Zakat to be paid for Rs 2lakhs
* Should the Zakat be paid for other savings apart from property and other assets?
-Yes Zakat is farz for other savings like LIC/PF/GFF/PLI/RD/KGID/ULID/ pension schemes and for all savings which is paid in premium/cash/salary deductions etc.