Zakat In Islam: One of the five pillars of Islam

 

Introduction

Zakat is a religious obligation for all Muslims who earn above a certain threshold. It is an Islamic financial term. The primary motive of zakat is religious and spiritual, while the social and economic aspects are obedient to it. There are Five Pillars of Islam: Shahada, Salah, Zakat, Hajj, and Fasting. As one of the pillars of Islam, it requires all Muslims to donate a portion of their wealth to charity. 

 Types of Zakat in Islam

There are two types of Zakat:

• Zakat Fitrah: Zakat Fitrah is an obligation.It must be paid once a year but at the beginning of the holy month of Ramadan until before the Eid prayer. Zakat is only intended for the people who have the economic capability to help others.

• Zakat Mal: Zakat mal or zakat asset is applied to money, gold, and other valuable assets owned and rented by someone. However, the condition is that the assets must be halal but fulfill the minimum limit, and have been owned for one year.

The Eight Categories of Zakat Recipients according to the Quran:

The Quran identifies eight categories of individuals and causes deserving of zakat in Islam:

• The poor: Those who lack the necessities of life.

• The needy: Those who have some but are insufficient to meet all their essential needs.

• Zakat collectors: Individuals appointed to collect and manage Zakat funds.

• To Incline the Hearts: Those who are open to Islam, or a Muslim to strengthen their faith or ward off evil.

• Those in debt: Individuals struggling with debt and who cannot fulfill their obligations due to circumstances beyond their control.

• For the Cause of Allah: Those defending Allah’s cause.

• Travelers: Muslims who are stranded or in need of assistance during travel.

• Freeing Captive: To free a Muslim imprisoned or kidnapped.

Importance of Zakat in Islam

Zakat plays a crucial role in promoting social and economic justice within the Muslim community. By redistributing wealth, it helps alleviate poverty, empower the underprivileged, and foster a sense of solidarity and shared responsibility. It encourages generosity, compassion, and selflessness, so creating a more equitable and harmonious society. 

This is very true from the aggregate society’s perspective as interest is a source of increase in wealth for the capitalists only where the poor become increasingly poor and the rich increasingly richer. Zakat in Islam on the other hand helps in the circulation of wealth from those possessing it in excess to those in need. Islam therefore encourages social cooperation and the ethics of care by instructing about giving Zakat.

Here are more five reasons why Zakat is more important:

• Fulfillment of the five pillars.
• Increases closeness to Allah and Iman.
• It purifies wealth.
• Ensures the re-distribution of wealth.
• Relieves suffering and bolsters the Muslim community.

what is the difference between Sadaqah and Zakat?

Both Zakat and Sadaqah are based on helping others, although there are key differences between them. Zakat in Islam is an obligatory annual payment made to purify all wealth held above the Nisab threshold value. Sadaqah is not at all obligatory but it is simply a kind gesture made to help others. Zakat in Islam,  plays an important role in society. 

Zakat in Quran 

• “Take from their wealth a charity by which you purify them and cause them increases, and invoke upon them. Indeed, your invocations are reassurance for them. And Allah is Hearing and Knowing.’’
  (Surah At-Tawbah, 9:103)
• “And establish prayer and give zakat, and bow with those who bow.”Surah Al-Baqarah (2:43) commands.’’
• “Those who hoard gold and silver and spend it not in the way of Allah – give them tidings of a painful punishment. On the Day when it will be heated in the fire of Hell and seared there will be their foreheads, their flanks, and their backs, [it will be said], ‘This is what you hoarded for yourselves, so taste what you used to hoard.”Surah At-Tawbah (9:34-35).

 

Zakat in Hadith

 

• Charity does not in any way decrease the wealth and the servant who forgives, so Allah will make thair wealth increase.(Sahih Bukhari, Book 24, Hadith 557)
• Due to his respect; and the one who shows humility, so Allah elevates him in the estimation.” (Sahih Muslim).
• “If one gives in charity what equals (the size of) one date-fruit from the honestly-earned money and Allah accepts only the honestly earned money –Allah takes it in His right (hand) and then enlarges its reward for that person (who has given it), as anyone of you brings up his baby horse, so much so that it becomes as big as a mountain.”(Sahih Bukhari, Vol 2, Book 24, No. 491)
• “The wealth of a person does not decrease by paying Zakat” (Sahih Bukhari)
• “One who pays Zakat, so Allah will make their wealth increase” (Sahih Bukhari)
• “The best charity is to pay Zakat on one’s wealth” (Sahih Muslim).
• “Zakat is a right that the poor have upon the rich” (Sahih Bukhari)
• “Giving Zakat is more beloved to Allah than giving in charity during the entire year” (Sahih Bukhari)

Zakat in Islam can be paid in Installments

It is admissible to pay Zakat in Islam in installments. when your Zakat eligible amount is substantial, and it is more convenient to pay over time. 

When will one pay Zakat in Islam?

• Zakat can be paid at any time throughout the year. However, Ramadan holds a special essence for Muslims as it is believed that the rewards of these donations, so increase tri-fold in this holy month.

• Zakat has to be given out by a Muslim whose wealth marks a minimum threshold because according to the ‘value’ of Nisab. The calculation of the days starts from the day you pay your Zakat or any time of the year. Until the next time it completes one Islamic year.

Zakat in Islam for Mortgages and loans

• A long-term mortgage is not to be counted as a liability in your Zakat calculation.
• Loans that are taken out for personal purposes can be subtracted as a liability in the Zakat calculation.

Zakat for Business goods and properties

• Business stock has to be counted as an Asset for Zakat purposes. 
• The value to be used is what would appear on your Balance Sheet. Usually, it is the cost of purchasing the stock.
• Business premises do not need to be counted as an Asset in the calculation. So any property the business owns also doesn’t need to be counted as Assets.

Who can not take Zakat?

• Spouses, children, and parents,  grandparents can’t receive your zakat. 
• Other relatives, however, can receive your zakat. 
• The recipient must be Muslim. Non-Muslim can’t take Zakat.

Conclusion:

Zakat in Islam, one of the five pillars of Islam, is the duty of Muslims to help the poor fight against greed and riches. It is a way to maintain societal balance and order by reducing guilt and replacing it with goodness. By delivering this donation, so you are helping your needy brothers and sisters, getting closer to Allah, and building a place for yourself in Jannah.