As one of the Five Pillars of Islam, zakat is a religious duty for all Muslims who meet the necessary criteria of wealth to help the needy.
It is a mandatory charitable contribution, often considered to be a tax.
The payment and disputes on zakat have played a major role in the history of Islam, notably during the Ridda wars.
It is customarily 2.5% of a Muslim’s total savings and wealth above a minimum amount known as nisab each lunar year, but Islamic scholars differ on how much nisab is and other aspects of zakat.
According to Islamic doctrine, the collected amount should be paid to the poor and the needy, Zakat collectors, orphans, widows, those to be freed from slavery, the aged who cannot work to feed themselves, those in debt, in the cause of Allah and to benefit the stranded traveler.
Calculation of Zakat
The amount of zakat to be paid by an individual depends on the amount of money and the type of assets the individual possesses. The Quran does not provide specific guidelines on which types of wealth are taxable under the zakat, nor does it specify percentages to be given. However, it clearly indicates to donate the “surplus” of one’s income. But the customary practice in the Islamic world has been that the amount of zakat paid on capital assets (e.g. money) is 2.5%.
Zakat is additionally payable on agricultural goods, precious metals, minerals, and livestock at a rate varying between 2.5% and 20% (1/5), depending on the type of goods.
Zakat is usually payable on assets continuously owned over one lunar year that are in excess of the nisab, a minimum monetary value. However, Islamic scholars have disagreed on this issue.
For example, Abu Hanifa did not regard the nisab limit to be a pre-requisite for zakat, in the case of land crops, fruits and minerals.
Unlike prayers, we observe that even the ratio, the exemption, the kinds of wealth that are zakatable are subject to differences among scholars. Such differences have serious implications for Muslims at large when it comes to their application of the Islamic obligation of zakat. For example, some scholars consider the wealth of children and insane individuals zakatable, others don’t.
Some scholars consider all agricultural products zakatable, others restrict zakat to specific kinds only. Some consider debts zakatable, others don’t.
Providing Support Through Islamic Giving
Your donation helps us save lives in all Afghanistan provinces, Learn about ISAR and how our work aligns with the principles of Islamic Charity and Zakat.
