Zakat in islam
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ZAKAT IN ISLAM. Concept and application. Definition. Zakat should be regarded more appropriately as a religious levy by which Muslims "make over part of their wealth for the needs of others" Z akat - "to grow and to purify".

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Concept and application


  • Zakat should be regarded more appropriately as a religious levy by which Muslims "make over part of their wealth for the needs of others"

  • Zakat - "to grow and to purify".

  • Zakat is neither a tax payment nor a charitable donation. It is a tithe - to "purify" the surplus wealth of the relatively well-to-do by redistribution to the destitute and needy.

Dalil of Zakat

  • Zakat is an important duty for Muslim as mentioned in the Al-Quran: "Keep up prayer and pay zakat".

  • While prayer is a physical form of worshipping Allah, zakat is a material form.

  • Zakat is compulsory :

  • "Take from their wealth charity (alms) to purify them and to cleanse them thereby, and pray for them."

    [At-Taubah: 103]

Dalil in Hadith

  • In one hadith from Bukhari, Abu Hurairah (r.a.) narrated that the Prophet SAW said:

  • "Whoever is made wealthy by Almighty Allah and does not pay the zakat of his wealth, then on the Day of Resurrection his wealth will be made like a bald-headed poisonous male snake with two black spots over the eyes. The snake will encircle his neck and bite his cheeks and say, 'I am your wealth, I am your treasure'. "

  • The first Muslim Caliph Abu Bakr As-Siddiq (r.a.), said:

  • "By Allah (SWT), if they refuse to pay me (even) a bridle which they used to pay the Messenger of Allah (pbuh), then I will fight them because of their refusal." [Muslim] In another hadith by Abu Dawud, the prophet s.w.t. said:

  • Allah has made zakat obligatory simply to purify your remaining property, and He made inheritances obligatory that they might come to those who survive you.

Types of Zakat

  • 1. Zakat fitrah (al-fitr) - a flat fee or levy imposed on each person.

  • 2. Zakat from earnings (al-mal) – a religious levy on wealth.

Zakat Al Fitr

  • To contribute a certain amount of staple food or pay an equivalent monetary amount in the month of Ramadan before the Muslim festive celebration or Eid al Fitr (Ariff, 1991).

  • The zakat al-fitr flat fee is one sa` – a little more than two kilograms of wheat, barley, dates, or rice – or the monetary equivalent (Al Qardawi, 1997).

Zakat from earnings

  • Zakat al-mal or zakat from earningsis levied only on Muslims whose wealth exceeds a threshold called nisab (Kahf, 2005).

  • Refer to: http://www.

  • a) Zakat from saving deposit.

  • Cash deposit in bank is zakatable. The nisab for cash money is based on the nisab for gold i.e. 20 mithqal (85 gram) or silver (595 gram).

  • b) Zakat from gold and silver

  • The gold and silver are zakatable if they fulfill the nisab rate and one year ownership (haul).

  • c) Zakat from shares 

  • The shares that invested in the company is usually paid in cash.

  • Zakat rate is 2.5% for the lowest value of shares. The shares must be held by the shareholders for one year and exclude any loan for purchasing the shares (if any).

  • Example 1: Shares owned at the end of one full year. Zakat rate is 2.5 % on the lowest cost and the market value.

    • 200,000 units of shares in Muslim Company x RM 1.00 ( the lowest price) = RM 200,000

    • The zakat is: RM 200,000 x 2.5% = RM5,000.

  • Example 2: Shares purchases within a year. The zakat is calculated based on 2.5 % on the value of shares after deducting the cost of purchasing new shares.

    • The value of shares – the cost of purchasing new shares

    • RM500,000 - RM400,000 = RM100,000

    • The zakat is: RM100,000 x 2.5 % =RM2,500

  • d) Zakat from agriculture

  • Zakat on agriculture to owner the staple foods of the particular countries which fulfill the nisab and haul.

  • Zakatable grains are paddy, dates, corn, wheat etc.

  • The nisab is 5 ausuk or equivalent to 363 gantang in Malaysia.

  • The haul is equivalent to one full year ownership. The grains or fruits must be planted by the farmers.

  • The farmers need to pay the 5% zakat rate on agriculture after grains have been harvested.

  • e) Zakat from livestocks

  • The livestocks are zakatable when the owners have fulfilled the conditions for nisab and haul.

  • Zakatable livestocks are sheeps, cows, buffaloes and camels.

  • These livestocks must be healthy, not criple and must not be used to work in the paddy field or carry the goods.

  • *For every 30 buffaloes, the zakat rate is I male buffalo, aged 1 year or more.

  • For every 40 buffaloes, the zakat rate is 1 female buffalo, aged 2 years or more.

  • ** If there are mixed female and male, the owner can choose any buffalo or cow to be paid as zakat.

Conditions for zakat

  • Islam

  • Wise

  • Genuinely owned-owner’s asset or asset free of claims by others.

  • Productive assets -capable of generating profit or revenue and net cash inflows:Cash in hand,Cash at bank,Stocks, shares, bonds, and securities,Inventories of finished goods, Rentals, Net Receivables.

  • Surplus assets- its value must equal to or above a minimum zakat-able(nisab).

  • Full year’s possession (Haul)

  • Fullfil the nisab- a given quantity for the period of an entire year.

Recipients of zakat

  • The hardcore poor or fakir

  • The needy who need help to supplement their income and life.

  • The travellers or musafir for religious or spiritual purposes

  • The reverts or muallaf

  • The debtors (on the edge of financial disaster)

  • The slaves who desire for freedom

  • The amil or zakat collector

  • The people who strive in the way of Allah (fisabililah)

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