In the Name of Allah, The Most Gracious, Ever Merciful.
ZAKAT (ALMS): THE THIRD PILLAR
What is Zakat: Zakat is collected from only Muslims and distributed to only Muslims. Zakat should not be used for building a mosque or other place of worship. It is not proper to transfer Zakat from one city or country to another except when dire need exist. However, it is allowed to transfer zakat to a needy family member in another city or country.
Requirements of Zakat:
To Whom Zakat Be Given: The Blessed Qur'an says; "Alms are for the poor and the needy and those employed to administer the funds, and for those whose hearts have been recently reconciled to truth, and for those, and those in servitude and debt; in the cause of Allah and for the wayfarer. Thus it is ordained by Allah and Allah is full of knowledge and wisdom" (Qur'an 9: 60) Zakat may be given to one or all of those mentioned in the aforementioned verse. Zakat may also be given to the community Mosque or Islamic Center for proper distribution
Zakat Ul-Mal Calculation Form
Zakat Ul-Mal
Calculation Form
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Zakah
can be defined as that portion of a man’s wealth, which is designated for the
poor. It constitutes one of the five pillars of Islam.
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Step No. |
Explanation
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Amount U.S. $
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1 |
Cash on hand and in bank |
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2 |
Gold and Silver (Coins,
Bars, Jewelry…ect) * |
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3 |
Non-delinquent loans
(Money you loaned to others and expect to be repaid) |
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4 |
Shares of Stocks |
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5 |
Loans (Money you borrowed
for business only) |
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6 |
Business Inventory (Market
value of inventory items at the Zakat due date) |
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7 |
Real Estate (Designated
for sale) |
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8 |
Net profits from business |
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9 |
Total amount (Add lines 1
through 8) |
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10 |
If the amount in step 9 is
less than the Nisab ** |
ZAKAT UL-MALis not REQUIRED |
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11 |
Zakat due (If the amount in step 9 is greater than
the Nisab **)
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Total amount on step 9 X (Times) 0.025 |
* Jewelry is not subject to Zakah unless its amount is excessive or is for business purposes. However, some scholars are in the opinion of that woman’s gold or silver jewelry must pay Zakah.
** Nisab is 3 oz of pure gold valued at approximately $800 as of November 7, 2000. A complete year of Islamic calendar should pass, starting from the very day of the nisab’s possession.
Zakat Ul Fitr
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Zakat ul-fitr is a type of sadaqah, which must be paid by every Muslim, young and old, male and female, at the end of the month of Ramadan (the month of fasting). Its purpose is to purify one who fasts from any indecent act or speech and to help the poor and the needy. The required amount of Zakat ul-fitr is one sa’ (One Sa’ equals approximately three Kilograms) of wheat, barely, raisins, dry cottage cheese (aqit), rice, corn, or similar items considered as basic food.
The
amount of Zakat ul-Fitr is approximated to be $8 per person
Zakat Ul-Fitr Calculation
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Number of
family members
X $8 = total amount due