What is Zakah:

Zakah is a specific form of sadaqah. It is an obligatory expenditure due from those Muslims who possess wealth in excess of their fundamental needs. It is among the pillars of Islam and is the right of Allah, the Exalted, given for the benefit of the Muslim ummah. The word “Zakah” means “purification and growth.” Its regular payment purifies the owner’s remaining wealth and purifies his heart from such ailments as greed and selfishness. Allah said in the Quran “Take, (O Muhammad), from their wealth a charity by which you purify them and cause them increase and invoke (Allah’s blessings) upon them. Indeed, your invocations are reassurance for them. And Allah is Hearing and Knowing.” [At- Taubah (9) verses-103] For every sane, adult Muslim who owns wealth over a certain amount for a period of one lunar year known as the nisab, they must pay 2.5% of that wealth as Zakah. Being a pillar and fundamental requirement of Islam, anyone who denies the obligatory nature of Zakah (unless out of complete ignorance) has removed himself from the religion. One who acknowledges the obligation, although failing to fulfil it, remains a Muslim – albeit a disobedient one subject to severe punishment in the Hereafter. He is required to repent sincerely to Allah and pay whatever he had withheld in the past.

The Intention:

Zakah is a form of worship; therefore, the niyyah (intention) is a condition for its validity. This means the giver must be aware that what he is giving is the obligatory zakah due from him, that he seeks acceptance of it by Allah, and that he expects reward from Him. The niyyah is knowledge and intent in the heart and is not pronounced by the tongue.

Who Must Give Zakah:

Zakah is due from every Muslim possessing the nisab for particular kinds of wealth. Nisab refers to the minimum amount of any type of wealth from which zakah is taken. The Muslim who possesses this minimum or more must give a stipulated proportion of the entire amount as zakah. The zakah of a child or mentally deficient person who possesses the nisab is calculated and paid from his property by his legal guardian. It is not an obligation for a slave or a non-Muslim. If a Muslim die owing zakah, it is paid from his estate before its distribution. In fact, it takes priority over other debts and any bequests by the deceased, for the Prophet (peace be upon him) said, “The debt of Allah has the most right to be settled.” (Al-Bukhari and Muslim)

Conditions Pertaining to Wealth or Property:

The nisab must be in excess of commonly recognized basic needs such as food, clothing, living quarters, transport, the tools or instruments of one’s trade, etc. The amount of wealth comprising the nisab should have been in the owner’s possession for a complete lunar year (with the exception of agricultural produce). Anything saved or put aside for the payment of a debt is not included in zakah calculations. In cases of shared ownership, the share of an individual partner must reach the nisab to be liable for zakah. The total value of the shares is irrelevant.

Types of Wealth Subject to Zakah:

Not every kind of wealth or property is subject to zakah. The main categories stipulated in the Islamic shariah are: Gold and silver or currency representing their value Merchandise held for sale Freely grazing livestock Non-perishable agricultural produce Of these, there are subdivisions, each having a specific nisab and required rate for zakah. None of them are combined to make a nisab (for example, gold and silver or dates and raisins), but each is considered separately.

The Zakah that you owe is calculated on:

An adult Muslim who owns wealth over a certain amount for a period of one lunar year known as the nisab, they must pay 2.5% of that wealth as Zakah Gold: The nisab by the gold standard is 85 grams of gold. Silver: The nisab by the silver standard is 595 grams of silver. Cash: Can be 85 grams gold or 595 grams silver price equivalent. Most scholars recommend the silver price because it is more beneficial to the needy. It is up to you whichever measure you wish to apply (Gold or Silver). None of them are combined to make a nisab.