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ZAKAT FAQ'S

ZAKAT FREQUENTLY ASKED QUESTIONS

What is Zakat?

Zakat, the third pillar of Islam, represents a compulsory act of worship for Muslims who possess wealth at or above the Nisab threshold. This obligation requires the donation of approximately 2.5% of one’s wealth to eligible recipients. Beyond its physical aspect, Zakat serves to purify wealth and nurture spiritual well-being. It fosters generosity, combating selfishness, and ensures support for the less fortunate in society, thereby alleviating hunger and poverty.

Who needs to pay it?

Every Muslim who has reached puberty, is mentally sound, and possesses wealth above the minimum threshold known as Nisab is obligated to perform Zakat.

When should one pay Zakat?

Once a person’s wealth reaches the Nisab and a lunar year has passed, Zakat becomes due immediately.

How much is the Nisab limit?

The Nisab threshold for Zakat is determined by the current value of 612 grams of silver. To calculate this, visit a local jeweler for the latest valuation. If your Zakatable assets exceed this amount and remain above it for one lunar year, you are obligated to pay Zakat.

What sort of assets are not Zakatable?

Here is a list of assets exempt from Zakat:

  • The residential or commercial property one is living in, such as a personal house.
  • Vehicles owned for personal use.
  • Debts owed to you where repayment is uncertain.
  • Jewelry not made of silver or gold, such as diamonds and other precious stones.
  • Furnishings and household items for personal use, not for trade.
What does one do about Missed out on Zakat payments?

If you have missed Zakat payments in your lifetime, you must estimate the Zakat due for each missed year and distribute it accordingly. These payments remain obligatory regardless of the number of years passed or whether you were aware of the requirement.

Narrated by Abu Huraira (r.a.), the Prophet (pbuh) said, “Every day, two angels descend from Heaven. One says, ‘O Allah! Compensate every person who spends in Your cause,’ while the other says, ‘O Allah! Destroy every miser.’”

(Sahih Bukhari, Chapter 24, 522)

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