Important information about Zakaah, Nisaab & Sadqah-Tul-Fitr

RAMADAN

Blessings of Ramadan

Abu Hurayrah (May Allah be pleased with him) narrated: The Prophet Muhammad ibn ‘Abdullah (Salla Allahu ta’ala ‘alayhi wa Sallam) said

“If one fasts the month of Ramadan out of sincere faith and in hope of attaining a reward from Allah (Subhanahu wa Ta’ala), then all his previous sins will be forgiven.” (Sahih Bukhari)

The recompense and reward for fasting is unlimited. The following hadith illustrates this point.

The Prophet Muhammad ibn ‘Abdullah (Salla Allahu ta’ala ‘alayhi wa Sallam) said:

“Every man’s good act is rewarded from ten to seven hundred times over.”

And Allah (Subhanahu wa Ta’ala) states in a hadith qudsi

“Fasting is (observed) for Me (alone); therefore, I myself will give its reward, the worshipper leaves his passions, his food and his drink (only) for Me.” (Sahih Bukhari)

ZAKAAH

1. Definition of Zakaah

Zakaah literally means to increase. Technically it means to purify one’s possession of wealth by distributing a prescribed amount, which has to be given to the poor as a fundamental Ibaadah (worship).

2. Virtues of Zakaah:

Allah (Subhanahu wa Ta’ala) says in the Qur’aan:

“The parable of those who spend their wealth in the way of Allah (Subhanahu wa Ta’ala) is that of a grain of corn. It grows seven ears and each ear has a hundred grains. Allah (Subhanahu wa Ta’ala) increases manifold to whom He pleases.” (Surah Baqarah 261)

3. Conditions of Zakaah to become Compulsory

1. To be a Muslim
2. Matured (not on minors nor on the guardians of such belongings of minors)
3. To be sane.
4. To be free (i.e. not a slave)
5. Wealth to be in one’s possession for one lunar year (i.e. at the beginning and end of the year to have Nisaab (explained in section “Nisaab” after the “How to Calculate Zakaah” section) although in the interim it may decrease).
6. Such wealth must be Zakaatable (i.e. gold, money etc.)

(a) Common Categories of Zakaatable Items

1. Gold and Silver
2. Merchandise (i.e. items for sale)
3. Debtors:

(b) What amount is Compulsory?

Two and a half percent is compulsory on:
(a) Gold
(b) Silver
(c) Cash

(c) Persons that Cannot be given Zakaah

1. Zakaah cannot be given to non-Muslims (Other charities can be given to them).
2. A wealthy person (i.e. one who possess wealth equal to the Nisaab).
3. A Haashmi (descendants of Abbas, Haashim i.e. sons of Abdul Muttalib being the uncle of Rasullullah salluallahu ‘alaihi wa sallam; Ali, Ja’far; Aqeel i.e. sons of Abu Talib).
4. One’s own parents and ascendants; children and descendants and one’s own spouse.
5. If one cannot determine whether the recipient is needy or not, then it is better to make certain before giving Zakaah to him. If Zakaah is given without inquiry and subsequently it is known that the recipient is wealthy then the Zakaah is not valid. It is to be given again.
6. Zakaah will not be fulfilled by purchasing books for an institution, or land purchased for public and made waqf (is an inalienable religious endowment in Islam, typically devoting a building or plot of land for Muslim religious or charitable purposes).

4. How to Calculate Zakaah

Zakaah is calculated on one’s net Zakaatable assets (if it equals the Nisaab of Zakaah) once every 12 lunar months. This can be done by a once off calculation at the end of year by totaling ones Zakaatable assets (such as cash, gold and silver jewelry, stock in trade), then deducting all liabilities. The result will be termed as the net Zakaatable assets. Therefore establish 2.5% of this figure. This will be the Zakaah due.

Zakaatable-Assets Total Amount ($)
Amount of cash at home, in bank account or kept in trust with someone, in any currency. $
Current value of money invested in stocks/shares bonds, treasury bills etc. $
Current value of gold and silver (whether in form of Jewelry or not, whether in use or not.) $
Stock in trade (merchandise) property, shares, raw material etc. bought for resell. $
Money in future income planes e.g. RESP, RRSP Etc. $
Rental due from others. $
Total $
Liabilities (the amount of money you owe people should be subtracted from the Zakaatable assets e.g. cost owed for goods, unpaid rent, bank loans, taxes, wages due to employees, wife’s dowry if there is an intention to pay etc.) $
The total Zakaat due is 2.5% after subtracting the liabilities from Zakaatable asset (net×0.025) $

5. Nisaab

Nisaab is the minimum amount of wealth owned by an individual for one year that obligates the individual to pay Zakaat.

6. To be Generous during Ramadan

Please be generous during the blessed month of Ramadan.

The Prophet Muhammad ibn ‘Abdullah (Salla Allahu ta’ala ‘alayhi wa Sallam) was a generous as the blowing wind during the month of Ramadan. (Sahih Bukhari)

6. Sadaqhtul Fitr ($5.00 per person)

This type of Zakaah is an obligation upon the head of every household and is due at the end of the month of Ramadan and before the Eid prayer. It is due from every family that has more than a day and night’s supply of food. For each person one supports and those living in one’s household (including servants and others), the head of the family must give the measurement of one sa’ (2.751kilograms and some say 3.8kilograms) of grain, wheat, rice, barley, dates, raisins, corn or whatever is considered basic staple food for the people of the religion or its equivalent in value. The recipients are the same as those for regular Zakaah i.e., poor and needy Muslims. (Sahih Bukhari)

7. Islamic Foundation of Toronto’s Ramadan Goal: $500,000

This year (2008) Islamic Foundation of Toronto’s (the source that provided this information to iMuslimz.com) Ramadan Goal is $500,000.

Hadith:

Ibn Abbas(R.A) reported that Allah’s Messenger Prophet Muhammad ibn ‘Abdullah (Salla Allahu ta’ala ‘alayhi wa Sallam) was the most generous of men and he was the most generous during Ramadan when Hazrat Jibrail (Alayhis Salam) visited him every night and recited the Qura’n to him. During this period the generosity of Prophet Muhammad ibn ‘Abdullah (Salla Allahu ta’ala ‘alayhi wa Sallam) was greater than the rainbearing wind which blows freely. (Sahih Bukhari & Shahih Muslim)

DONATION

Please join hands and donate generously to meet Islamic Foundation of Toronto’s goals during the blessed month of Ramadan.

Sources

Islamic Foundation of Toronto – http://www.islamicfoundation.ca
Tel:416-321-0909 Fax:416-321-1995
441 Nugget Avenue
Scarborough, Ontario, Canada
M1S 5E1
Contact: info[at]islamicfoundation.ca    (Note: replace [at] with @)


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2 thoughts on “Important information about Zakaah, Nisaab & Sadqah-Tul-Fitr”

  1. Salaam Sheigh.Could you please guide me . I gave a property to my daughter. There are currently tennants in the property and I live from the rental. My question is , Do I have to pay zakaah on the value of the property each year? What i mean is , is the property seen as stock in trade ?

    Shukran

    Reply

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