This is a very important pillar of Islām and possesses enormous advantages like the following:

1. It meets the needs of the poor in the society.
2. It strengthens, fosters good relations between the rich and the poor, as everyone is naturally inclined towards the one who does good to him.
3. It purifies one's self and sanctifies it, and it purges one's morals of covetousness and miserliness that that are natural in human beings.
4. It promotes generosity and sympathy in a Muslim towards needy persons.
5. It draws Allāh's Subhanahu Wa Ta'ala Blessings; it causes increase in wealth and replenishes it.

Al-Zakāt is obligatory on the following four types of properties:

1. The produce of earth such as grains and fruits.
2. The grazing animals.
3. Gold and silver.
4. Commercial Commodities.

For all types of properties , Nisāb is fixed, which is the minimum amount or quantity liable to payment of Zakāt, below which no Zakāt is payable.

The produce of Earth:

The minimum quantity for produce i.e. grains, fruits, wheat, rice, dates, grapes, barley, ect is 5 Wasq, or approx. 675 kg.

If in cultivations, irrigation was made through rains or canal or fountain ect., without any effort by the farmer, 1/10 of total produce is to be paid as Zakāt.

If the field was irrigated by waterwheels and other devices for irrigation, which involved; 5% of the total produce is to be paid as Zakāt.

And regarding the Zakāt of animals, a detailed study if it may be had form the authentic Hadīth of the Prophet Muhammad Sala-llahu Alahi Wa Salam or from scholars of Hadīth.

Gold, Silver and Cash etc.:

The minimum Nisāb of silver for the Zakāt to become due on it, is 140 Mithqāl, which is equivalent to 595 grams, and the Nisāb of gold is 20 Mithqāl which is equivalent to about 92 grams.

The Zakāt due on either gold or silver is 1/40  or 2.5% of the total quality, provided one is in possession of the minimum amount of Nisāb mentioned above, of any one of them, and one year has passed.

The same ruling as in gold, true goods in the case of currency notes, coins or bills as well, be it dirham's, dinars, euros, dollars or others, provided its value reaches the minimum Nisāb of gold at current market value and one year has passed over it. When the above conditions are fulfilled, 1/40 part or 2,5% of the total value would be given out as Zakāt.

But as regards Zakāt on the  benefit derived from the capital (i.e. Original amount), the condition of passing one year, does not apply. The benefit would be include in the capital (original amount( at the same time of calculation for payment of Zakāt. Likewise the new births in grazing animals will be added to the original number of animals for the payment of Zakāt, if the original number reaches the Nisāb and completes a year without due consideration of the time transpired over new births.

The same rulings applies to the adornments of women, made from gold or silver for personal use or lending as loan, when these reach the Nisāb and one year has passed over them, in line with the opinions of the authentic scholars in the light of Prophet Muhammad's Sala-llahu Alahi Wa Salam.

Muhammad Sala-llahu Alahi Wa Salam said: "If any owner of gold or silver does not pay the Zakāt due on him, when the day of Resurrection would come, plates of fire would be beaten out for him; these would be heated in the fire of Hell and his sides, his forehead and his back would be cauterized with them. Whenever these cool down, (the process is) repeated during a day the extent of which would be fifty thousand years, until judgement is pronounced among slaves, and e sees whether his path is to take him to Paradise or to Hell."   Sahīh Al-Bukhāri. (TMH**)

 

Narrated by Amr bin Shu'aib Radi-Allahu 'anhu: That once the Prophet Muhammad Sala-llahu Alahi Wa Salam on seeing a woman with two bracelets of gold in the hands of her daughter, asked her whether she gave out the Zakāt of it. When she replied in negative, the Prophet Muhammad Sala-llahu Alahi Wa Salam said, "Would you be pleased if Allāh Subhanahu Wa Ta'ala puts on you two bracelets made of fire in their place?" On hearing this she put them off. (Reported by Abu Dāwūd, At-Tirmidhi, Ibn Mājah (TMH**)

 

Narrated by Um Salamah Radi-Allahu 'anha: While she was wearing an anklet of gold, she asked the Prophet Muhammad Sala-llahu Alahi Wa Salam, "O Messenger Sala-llahu Alahi Wa Salam of Allāh Subhanahu Wa Ta'ala! It's Kanz (a hoarded wealth)." The Prophet Muhammad Sala-llahu Alahi Wa Salam replied," If it has been purified (by paying Zakāt of it), it is not a Kanz (a hoarded wealth)." (TMH**)

Also This command is also supported by other Ahādith .

Type of wealth	Nisāb level	Zakāt rate	Remarks
Gold	92 Grams	2,5%	personal use
Silver	595 Grams	2,5%	personal use
Cash, Notes, Coins	equivalent to gold	2,5%	present value
Produce of earth	675 Kilo grams	5%	Manual irrigation
-do-	675 Kg.	10%	natural irrigation - rain, canal, ect.
Commercial Commodities	gold equivalent value	2,5%	present value

Some scholars are of differing opinions that "the gold for personal use or lending are exempt from Zakāt" and they have based such assumptions the following evidences:

• The Hadīth says that' "There is no Zakāt on the jewellery" (for women). This is a weak Hadīth because one of the narrators is considered weak;

• There are sayings of some of the companions such as Anas Radi-Allahu 'anhu, Jabir Radi-Allahu 'anhu, Ibn Umar Radi-Allahu 'anhu, Aisha Radi-Allahu 'anha, and Asmā Radi-Allahu 'anha that there is no Zakāt on personal jewellery;

• Narrated by Abū Hurairah Radi-Allahu 'anhu" No Sadaqah is due from a Muslim on his slave or horse," Reported by Sahīh Al-Bukhāri. Based on this Hadīth some of the scholars arrive at the opinion that the slave or horse of a man is equivalent to the jewellery of a woman and as such the verdict should apply.

With respect to such opinions, our position is that Zakāt is payable on personal jewellery because we  believe it is more in accordance with the ruling of the Qur'ān Al Kareem and Sunnah as explained above.

Commercial commodities and Land:

As regards the Zakāt on commercial commodities, the owner should calculate it's value at the end of every year and 1/40 or 2,5% part of the present value would be given out as Zakāt. Whenever its presents value is equal to the purchase value or more or less does not matter here.

In accordance with the Hadīth narrated by Samurah: "Allāh's Subhanahu Wa Ta'ala Messenger Sala-llahu Alahi Wa Salam enjoined us to give out Sadaqah from whatever we prepare for sale." (Abu Dāwūd Radi-Allahu 'anhu) This includes lands for resale, buildings, cars, machinery for deriving water or any other article obtained for resale.

As for buildings constructed for rent but not for sale, Zakāt should be paid on the rent after one year transpires over the amount; but the building itself is not liable for Zakāt as it is not an item for sale. Likewise, personal cars for hire are liable for Zakāt since they are not meant for sale as the owner has purchased it for use. And if the owner of the rental cars accumulates the returns up to the amount that is liable for Zakāt, then he should pay Zakāt if one year passes over such money, when ether he had kept it for personal expenses, or for expenses in marriage, or such as settling debts or buying real estate or for any other purpose ; this is in according with the evidence of Shari'ah (Islamic Laws) on the obligation of Zakāt. According to the authentic views of scholars, debt cannot be an excuse for non-payment of Zakāt.

The same is true with the wealth or money of orphans and mentally retarded people; when it reaches the Nisāb and one year had passed the Zakāt must be paid, and the guardians should give out Zakāt on their behalf when a year passes over the goods.

Allāh Subhanahu Wa Ta'ala categorizes those who deserve Zakāt in His Qur'ān Al Kareem;

Sūrah At-Taubah (The Repentance) IX, Ayāt 60

إِنَّمَا الصَّدَقَاتُ لِلْفُقَرَاءِ وَالْمَسَاكِينِ وَالْعَامِلِينَ عَلَيْهَا وَالْمُؤَلَّفَةِ قُلُوبُهُمْ وَفِي الرِّقَابِ وَالْغَارِمِينَ وَفِي سَبِيلِ اللَّهِ وَاِبْنِ السَّبِيلِ فَرِيضَةً مِنَ اللَّهِ وَاللَّهُ عَلِيمٌ حَكِيمٌ As-Sadaqāt (here it means Zakāt) are only for the Fuqarā' (poor), and Âl' Masākin (the poor) and those employed to collect (the funds); and to attract the hearts of those who have inclined (towards Islām); and to free the captives; and for those in debt; and for Allāh Subhanahu Wa Ta'ala Cause (i.e. for Mujtahidūn - those fighting for the holly battle), and for wayfarer ( a traveller who is cot off from everything); a duty imposed by Allāh Subhanahu Wa Ta'ala. And Allāh Subhanahu Wa Ta'ala is All-Knower, All-Wise. (TMQ* 9: 60)

Article by Abū Redwan. Sources used for this article: Al Qur'ān Al Kareem, The most important lessons for every Muslim by Al Shaykh Abdulaziz bin Baz, Kitab At-Tauhīd by Al Shaykh-ul-Islam and Muhammad bin Abdullāh Abdul-Wahab and Pillars of Islām and Imān by Al Shaykh Muhammad bin Jamal Zino.

* = Translation of the Meaning of the Qur'ān Al Kareem. This translation is for the realized meaning, so far, of the stated (Sūrah : Ayāt)  of the Qur'ān Al Kareem.  Reading the translated meaning of the Qur'ān Al Kareem can never replace reading it in Arabic, the language in which it was revealed.  

**= Translation of the Meaning of the Ahādith or Hadīth. This translation is for the realized meaning, so far, of the stated of the Ahādith or Hadīth. Reading the translated meaning of the Ahādith or Hadīth can never replace reading it in Arabic, the language in which it was revealed.