Check Page Rank of your Web site pages instantly:

This page rank checking tool is powered by PRChecker.info service

Showing posts with label Zakat. Show all posts
Showing posts with label Zakat. Show all posts

Friday, November 22, 2013

Nizab of Zakat



What is the nisab?
To be liable for zakat, one's wealth must amount to more than a threshold figure, termed the "nisab". To determine the nisab, the are two measures: either gold or silver.

    Gold: The nisab by the gold standard is 3 ounces of gold (87.48 grammes) or its cash equivalent. This is approximately £650 or $926.40, but will vary with the current market value of gold. For the latest prices, refer to the Online Zakat Calculator
    Silver: The nisab by the silver standard is 21 ounces of silver (612.36 grammes) or its equivalent in cash. This is approximately £70 or $130.

Example: In 1423 AH, Suraya's zakatable wealth came to only £65. She owes no zakat. The next year was better for her, and she now owns £2000 in zakatable wealth. She will be liable for zakat after the money has been in her possession for a lunar year.
Should I use the gold or silver nisab?
The nisab calculated with the silver standard is significantly lower than its gold counterpart. This is because the value of silver has plummeted since the time of the Prophet (Allah bless him and give him peace).
There are arguments for using either nisab value - many scholars say that it is better to use the silver nisab since it will increase the amount of charity distributed, others say that the gold nisab is closer to the nisab in use at the time of the blessed Prophet (Allah bless him and give him peace).
However, if your assets consist entirely of gold, you must use the gold nisab, and similarly, if they consist entirely of silver then the silver nisab must be used.
My wealth decreased below the nisab for a few months during the year, do I still pay zakat?

As long as you are in possession of wealth above the Nisab threshold at the beginning and end of the zakat year, zakat will be payable, even if your wealth dipped below the nisab for most of the year.
I have more money than the nisab, but I need it for my living expenses
If a person possesses wealth exceeding the nisab threshold, but has to pay rent, purchase food, clothing, etc., for himself and his dependants, then these costs may be deducted from one's wealth.

Examples: Suhail has money in his bank account above the nisab. However, after deducting his rent payment and other expenses, the remainder is less than the nisab so no zakat is payable.
Farouq Abdullah is saving money to buy tools for his carpentry workshop. After a while, his savings exceed the nisab threshold: if he buys the tools before the zakat year is up, then no zakat is payable; if, on the other hand, he delays buying the tools until the zakat year has elapsed then zakat will be payable.
If after deducting these costs, his remaining wealth is less than the nisab then no zakat is payable.
When does the zakat year begin?
The zakat year begins on the date on which you were first in possessions of wealth above the nisab.
This will be your seed date, whenever it comes around you will have to calculate zakat, irrespective of any fluctuations in the amount of wealth in your possession.
The only situation in which your seed date will change is if you were to become totally bankrupt and lose all your assets and belongings. In this situation, your new seed date will begin when you are once again in possession of wealth above the nisab.
If you are not sure of your seed date, then estimate it to the best of your ability.

Zakat



Zakat
What is Zakat?
Zakat is an obligatory duty and one of the five pillars of Islam. It is mandatory when two conditions are simultaneously satisfied which are Nisab and the Due Date. 

What is Nisab and its current value?
Nisab is the exemption limit for the payment of Zakat. In other words, it is the amount which savings or capital or product must exceed in order for the Muslim owner to be obliged to give zakat. Nisab amount calculated based on 3 oz of pure Gold which is $4,552 as of 7/06/2011.

When is Zakat due date?
Zakat is due after one Lunar (Hijri) year starting from either the first day you acquired the amount of Nisab or the day you paid Zakat last year. The month of Ramadhan is considered to be the best time to pay Zakat.

When is Zakat Due ?
1. Passage of One Lunar Year:
    Zakat is obligatory after a time span of one lunar year passes with the money in the control of it's owner. Then the owner needs to pay 2.5% (or 1/40) of the money as Zakat. (A lunar year is approximately 355 days).
2. Deduction of Debts:
    The owner should deduct any amount of money he or she borrowed from others; then check if the rest reaches the necessary nisab, then pays Zakat for it.

If the owner had enough money to satisfy the nisab at the beginning of the year, then the money increased (in profits, salaries, inheritance, grants...etc.), the owner needs to add the increase to the nisab amount owned at the beginning of the year; then pay Zakat, 2.5%, of the total at the end of the lunar year. (there are small differences in the fiqh schools here)

Each Muslim calculates his or her own Zakat individually. For most purposes this involves the payment each year of two and a half percent of one's capital. (Zakat Calculator)

    A pious person may also give as much as he or she pleases as sadaqa, and does so preferably in secret. Although this word can be translated as 'voluntary charity' it has a wider meaning. The Prophet said 'even meeting your brother with a cheerful face is charity.'

    The Prophet said: 'Charity is a necessity for every Muslim. ' He was asked: 'What if a person has nothing?' The Prophet replied: 'He should work with his own hands for his benefit and then give something out of such earnings in charity.' The Companions asked: 'What if he is not able to work?' The Prophet said: 'He should help poor and needy persons.' The Companions further asked 'What if he cannot do even that?' The Prophet said 'He should urge others to do good.' The Companions said 'What if he lacks that also?' The Prophet said 'He should check himself from doing evil. That is also charity.'

LIVE CHAT