When is zakat payable

Value of Silver. Base Nisab on the value of. Silver Gold. Cash Deposited for Future Purposes. Given out in loans. Other Investments. Value of stock. Wages Due to Employees. Tax, Rent, Utility bills due.

Who is Eligible for Zakat? To qualify to receive a Zakat payment, a beneficiary must fall within at least one of the following eight categories: Poor In need Registered Zakat collectors Revert Muslims in need Those in debt Fighting the cause of Allah SWT Muslims who are stranded Those being held against their will slavery As well as each of the above categories, there are other limitations on who can receive Zakat.

Paying Zakat Your Zakat donation will be distributed to those most in need both here in the United Kingdom and around the world in communities we work with. Ramadan appeals, making a difference. Gaza Learn more. Find Out More Donate. While many prefer to give zakat al-Mal during Ramadan, the option to give is always open. However, when it comes to zakat al-Fitr, it should be given before Eid prayer.

It is advised that you consult with your local imam or scholar for more detailed inquiries. You can use our zakat calculator to calculate how much you need to give. In Arabic, zakat means purification, growth and blessing.

It is a charitable practice that requires all able Muslims those who meet the requirement of zakat as dependent upon nisab and hawl—see below to contribute a fixed portion of their wealth — 2. Nisab is the minimum amount of wealth a Muslim must have—after calculating necessary expenses—to be eligible to contribute zakat.

Nisab is equivalent to the current value of 3 ounces of gold. Hawl is defined as the completion period for a zakat asset, which is one lunar year. In other words, the wealth on which zakat should be paid must have been held for at least one full year.

There are some forms of zakat that do not require hawl, such as for crops, when zakat should be paid at the time of the harvest. For clarification, it is recommended that you consult with your local imam or scholar.

Every adult Muslim who meets the requirements of nisab and hawl in a calendar year must pay zakat for that year. There are some conditions that may require others, a wali guardian of a minor for instance, to pay zakat too. As always, it is best to consult with your local imam or scholar for clarification. Today, this is usually the equivalent value in your local currency. In the Hanafi madhab, the value of silver is used to determine the Nisab eligibility to pay Zakat.

In other madhabs, the value of gold is used. The value of gold and silver changes daily, so your Zakat payment will vary a little each year. You can use our Zakat calculator to work out this year's Zakat. Zakat should be paid on wealth rather than income. Zakat is not just paid on the savings in your bank account. You need to pay Zakat on other types of wealth, such as:.

A commonly asked question is whether women need to pay Zakat on their gold and silver jewellery. There is a difference of opinion on this:. Another commonly asked question is whether Zakat needs to be paid on valuable items such as property or cars. The answer is: no, these items are exempt. However, if you intend to sell these items then it becomes a trading good and Zakat will be due on such items if a lunar year passes from the time of your intention to sell.

If it is easier, you can spread out your Zakat payments over the whole year. Calculate how much Zakat is due on you that year, and divide it into amounts twelve. Any land that generates income, such as letting out a property as a landlord, is considered to be a capital asset and Zakat is applied to the income that is generated, rather than the valuation of the property itself.

However, if you have bought land with the intention of selling it on reasonably quickly such as in the next few months to a year , it is treated as commercial goods and thus Zakat is liable.

Zakat should be calculated based on the value of the land on the date the owner pays Zakat. There are two different types of Zakat that Muslims are obligated to pay. The second type is Zakat ul-Fitr, also called Fitrana, is donation of food made during the month of Ramadan before the Eid prayer.

Zakat Definition Zakat is a charitable donation which is made annually under Islamic law. What Does Zakat Mean? When is Zakat due in ? Can we Give Zakat Before Ramadan?