Zakat FAQs

Zakat FAQs

Q1: What is Zakat?

Zakat is one of the important pillars among the five pillars of Islam. It is compulsory act intended by Allah to be performed by every adult Muslim. It is part of the wealth that Muslims must pay annually, to support the poor & needy.

Q2: What is the meaning of Zakat?

Zakat literally means ” to increase, to be clear, to raise ” It comes from the root letters za, kaf, ya, which has several meanings: to be clean, to pay the compulsory charity, to be pure, and to praise oneself, to justify. It can also be considered a form of sadaqah (charity), given to the poor.

Q3: What are Zakat able assets?

Following assets can be included as zakat deductible. Business stock, gold, silver, cash, mutual funds, livestock, minerals, agriculture and produce.

Q4: What is the amount of wealth/assets where zakat becomes liable?

The Prophet (PBUH) fixed the nisab of gold and silver which are 87.48 grams of gold or 612.36 of silver.  The value of both metals changes every day so one has to consider the current rate in mind while calculating Zakat amount. To benefit the poor, scholars consider the nisab whichever is less.

Q5: Who are the Payees of Zakat?

The Qur’an (Chapter 9, verse 60) categorize the distribution of Zakat in eight groups:

1.  The poor (al-fuqara) – someone with little to no income.

2.  The needy {al-masakin) – someone in difficulty.

3.  Zakat administrators – such as charities.

4.  New Muslims and friends of the Islamic community.

5.  Those in bondage – such as slaves and captives.

6.  Those in debt.

7.  For the cause of Allah.

8.  The wayfarer – those who are stranded and/or travelling with little resources.

Q6: After How long is the acquisition of Nisab, Zakat becomes compulsory?

A person has to have nisab for at least one lunar year after which zakat becomes compulsory to pay.

 

Q7: Can Zakat be paid in instalments or in advance?

It is also allowed to pay the Zakat in instalments, although it is recommended to have it paid in one single transaction. You can pay your Zakat in advance or on the due date, as long as you are sure that your wealth will remain the same.

 

Q8: What is Nisab of Zakat?

To be eligible for Zakat a Muslim must possess minimum amount of wealth. Two values are used to calculate the threshold of Nisab – Gold and Silver. The Nisab is the value of 87.48 grams of Gold or 612.36 grams of Silver.

 

Q9: How much is Zakat?

Zakat is 2.5% of total wealth. If you have £1,000 of wealth you are then liable to pay Zakat of £25.