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AKAT (ALMS TAX)

Compiled by: Ms. Iffat Khalid


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1. DEFINITION - LITERALLiterally means growth, to increase, to flourish

Also used to denote purification(As-Shams: 9)

( Al-Ala: 14)

Also used to connote piety, purity and innocence in

character (zaki)To transfer ownership of a specified portion of wealth

from a specified amount of wealth to a specified person,

subject to the conditions specified by the Shariah, for

the sake of Allah.The wealth taken out for the payment of Zakat is also

called Zakat because it increases, purifies and saves the

remainder of the wealth or the payer from calamities.

"!

# %$ &'(At-Tawbah: 103).


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SADAQAH

It is also called Sadaqah, derived from sidq, because it indicates

the persons truthfulness in fulfilling the command of Allah

Almighty.

There are 2 types of Sadaqah:

. !a"ibah #mandatory$

2. %afilah #optional$

. Wajibah (Mondatory) &a'at

Sadaqah Al()itr, )itrah, &a'at Al()itr

Al(*dhhiyyah

+affaaraat charity for sa'e of e-piation

. Sadaqaat Naafilah

.Any type of optional charity given for beneficial causes, e.g.

.onstruction of /as"ids, schools, hospitals etc

.Any charity beyond the mandatory amount of &a'at and other Sadaqaat

!aa"ibah


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HISTORY

Previous nations had to give it.Obligated in:

Shawwal, 2ndHijrah before sawm9thHijrahBefore Hijrah

Scholars reconcile all 3 opinions by stating that Zakat as a generalform of charity was obligated before Hijrah. In the 2ndyear after

Hijrah, it was obligated with details. In the ninth year, it wasimplemented by the state with appointed agents sent out to collectit.

Obligation:One of the pillars of Islam

Its obligation is proven by the Quran, Sunnah and IjmaIn 32 places in the Quran, we have been ordered to give Zakatalong with the command of offering salah.

All books of Hadith have mentioned it.Consensus of the Sahaba to fight those who rejected it.

Whoever denies its obligation, will leave the fold of Islam


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ZAKAH FITRAH

an be paid in the form of staple food0 rice, or in the form ofmoney.

At the time of sunset on 1id ul )itr night #i.e. the nightpreceding 1id day$, hoever is adult and sane and is neitherunconscious, nor poor, nor the slave of another, he shouldgive, on his on behalf as ell as on behalf of all those ho

are his dependents, about Three 'ilos per head of heat orbarley or dates or raisins or rice or millet etc.

Zakat on Weath Depends on the amount of wealth that you have and how long

you had it for

The &a'at of ealth is for nine items:

3 )our food grains #!heat, barley, dates and dried grapes$0

3 Three quadrupeds, #Sheep or goats, cos and camels$

3

to types of coins, #gold and silver$.


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ZAKATABLE ITEMS

Items that are liable to Zakat are

8:1. Khums

2. Gold

3. Silver

4. Currency (in use)

5. Business goods or stock in trade

6.Agricultural produce

7. Livestock grazing

8. Treasure troves


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NISAB (2.5%)

Nisab The threshold for Zakatableassets at which Zakat becomes due. It is of 2

types:

Nisab Grams Ounces TroyOunces Tolas

Gold20

Mithqals

/Dinars

87.48 3.08 2.8125 7.5

Silver 200Dirhams

612.36 21.6 19.6875 52.5


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GLOSSARY

/ali' %isab 4 Sahib %isab

The possessor of the nisab. A person ho possesses any one or acombination of any of the 5a'atable assets equivalent to 26

mithqaals4dinars gold or 266 dirhams silver after deducting debts.

People are of 3 types concerning Zakat:.

Sahib %isab ( Those ho are obligated to give &a'at2. Those ho are not obligated to give &a'at, and they are

eligible to receive &a'at #e-penditure of the state$.

7. Those ho are not obligated to give &a'at, but they are noteligible to receive &a'at. #8anu 9ashim$

. Such people, hoever are obligated to give Sadaqah Al()itr andperform sacrifice.


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1.1. Conditions for the one Giving Zakat

. )reedom

2. Islam7. Age of puberty according to Abu 9anifah, hile the

rest say the guardian must give it on behalf of minorif he4she possesses %isab.

. Sanity;. .

1ach adult must pay separately. !ife must calculate ? pay her on &a'at


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CONDITIONS FOR GIVING

. IntentionThe intention must be in the heart at the time of giving &a'at

to the poor person or his agent, or at the time of setting it

aside for the sa'e of &a'at to be given at a future date.

It is not necessary to mention to the poor person that this is&a'at as long as the intention of &a'at is in the heart.

2. Tamlee' #Transfer of onership$:. The &a'at must be given to the poor by transferring its

onership completely to the poor.. &a'at cannot be spent on construction of buildings, /asa"id etc.

7. &a'at may be given in 'ind from the same category or an

equivalent amount from another category or in cash.


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CONDITIONS FOR GIVING

. A person may appoint another individual ororgani5ation as an agent to distribute &a'at.. That organi5ation must be trustorthy and 'noledgeable.

. The &a'at ill not be considered as given until the agent

distributes it to those eligible.. The agent must distribute it in the venue as instructed.

;. A person may as' someone to give &a'at on his

behalf. This ill then become a debt and must be

paid off.


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!" #$%& ' SI%R

In any form whether raw or in the form of coins, ingots, cutlery,utensils, jewelry etc.

For whatever purpose whether its for investment, novelty,decoration, personal use etc.

Both must be at least 50% pureWhite gold is 75% pureThere is no Zakat on any other metals regardless of their value

e.g. diamonds, platinum2. Currency:

For whatever purpose

Whether at home or in banks

Of any country as long as it is in useCash deposited or set aside for marriage or Hajj

Deposited in trusts

Rent from real estate

Debts receivable


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Anything bought ith the intention of reselling.

If at the time of buying, the intention to resell as not made, it illnot be a business good. If the intention to resell as not made at the time of buying, but later

on the person changed his intention and anted to resell, it ill stillnot be categori5ed as a business good.

@a material for manufacture )inished factory products

*" Sto+k,

Shares bought for capital gain

/ar'et value is &a'atable

Shares bought for long term investmentThe non(&a'atable assets of the company may be deducted

from the mar'et value

. B!SINESS GOODS


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!hether family trusts or created under a ill, &a'at is payable

each year on the &a'atable assets of the trust less alloableliabilities.

If a family trust is created solely for ta- planning purposes, the&a'at is payable by the true donor i.e. the person hose assetsare transferred into the trust.

In all other cases, the &a'at is payable by the beneficiaries ofthe trust in proportion to their respective shares.

-" .led/e, ' &e0o,it,

Any &a'atable asset #cash, gold$ that is pledged to a creditor as

a security #rahn$ is not &a'atable.

Similarly the amount forarded as deposit for rent or any other

service is also non(&a'atable.

5. TR!STS


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RIKAZ " HIDDEN TREAS!RES

If a /uslim finds precious metals or minerals in his land, he is required to

pay 4; of it in &a'at.

This is paid only once hen it is discovered.

Agricltral !rodce:

If the crops ere atered ithout much effort, such as by spring ater or

by rain, *shr 4 one(tenth #6$ is required as &a'at.

If such produce ere atered ith effort, such as from ells or irrigationchannels, or through purchase of ater, one(tentieth #;$ is required as

&a'at.

"he #hariah has mandated Zakat based on the level of effort re$ired

for ac$isition.

Treasures 26

9arvest yielded through natural means li'e rain ater, springs 6

9arvest yielded through manmade means li'e ells and streams or

purchase ;

Bold, silver, cash, business good 2.;


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ZAKAT ON LIVESTOCK

&a'at is due on 7 'inds of livestoc' hen they reach their specified %isab:

Conditions for Zakat de on livestock are: They must reach the %isab

Capse of a year

They must have been gra5ing on open and public pastures for at least = months.

If they ere fed in enclosures in ones private property for more than =months, then they are not &a'atable. If such animals ere bought for business, then they ill fall under the category of

business goods, and their value ill be added to that category.

If they are 'ept for the sa'e of benefitting from their mil' and meat, they are not

&a'atable at all.

Livestock NisabBoats 4 Sheep 6

os 4 8uffaloes


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GOATS # SHEE$

Number ofgoats/sheepin possession

Number of oneyear oldgoats/sheepdue

1 - 39 Nothing

40 120 1 Goat

121 200 2 Goats

201 - 399 3 Goats

400 4 Goats

Animals due according to

the table must be at least one

year old.

8oth male and female areacceptable.After 66 goats, for every

hundred, one one year old

goat ill be due.


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COS&B!FFALOES# ofcows

# of 1 year oldcalves due

# of 2 year oldcalves due

1 - 29 Nothing Nothing

30 - 39 1 Nothing

40 - 59 Nothing 1

60 - 69 2 Nothing

70 - 79 1 1

80 - 89 Nothing 2

90 - 99 3 Nothing

100 - 109 2 1

110 - 119 1 2

120 - 129 4 one year olds or 3 two year olds

Calves given as

Zakat may be male

or femaleAfter 130, for

every thirtyanimals, one 1-

year-old animal

must be given; and

for every forty, one2-year-old animal

must be given as

Zakat.


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CAMELS

# of Camels Rate of akat

1 - 4 Nothing

5 - 9 1 goat

10 14 2 goats

15 19 3 goats

20 - 24 4 goats

25 - 35 1 one year old cael

36 45 1 two year old cael

46 60 1 three year old cael

61 75 1 !o"r year old cael

76 90 2 two year old caels

91 - 120 2 three year old caels

Camels given asZakat must be

femaleGoats given as

Zakat may be maleor femaleAfter 120, for

every forty camels,

2 two year old

camels must be

given; and for every

fifty, one 3 year old

camel must be

given as Zakat.


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EXPENDITURE OF THE STATE

!"#

#"!&%$ '"()*+ ! ,+-./

0!"&102

34# #"!56 7-(8!" 34# #"!+&=+-+ ?+ #"!@ 8 H

The Alms are only for the poor and the needy, and the

officials #appointed by a /uslim government$ over

them, and those hose hearts need to be reconciled #tothe truth$ and the #ransoming of$ slaves and those

#sun'en$ in debts and in the ay of Allah and the

ayfarer0 an ordinance from Allah0 and Allah is

'noing, !ise. At(Tabah, D: =6


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1$*()- .A'-F*+*

- 3$.,-,+ .A'-A,'/

2. A'-M*0*/-,/01$

Singular FaqirOne who does not possess Zakatable goods equivalent to the Nisab

Nor any non-Zakatable goods beyond ones basic necessities equivalent to

the NisabEven though he may be healthy and earning

Singular - MiskeenOne who has nothing at all

Singular - AmilThose appointed by an Islamic government to collect Zakat from the

peopleIn the absence of a Muslim government, this category will not existThis is the only category wherein one is paid Zakat as wages


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2%+ 4$41$*3 .30 *+40 / 43 6 +73/7'

5$5 . S'*80

According to Shafi ? Ahmed, these are of 2 types

1. Mslims

!ea' in faith%. &on'Mslims

Eersuade them to Islam Erotection from their conspiracies

According to them, being faqir is not a condition

According to Ab (anifah ) Malik* non'Mslims +ere never give Zakat


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667$, . D643+0

Singular ( Bharim

Those ho hen their debts are deducted, they no longer possess the %isab.The debts ere not ta'en for unlaful purposes

$8 9,:; 7> . I/ 4 9*4 3: A''*

Those sub"ects of a /uslim state fighting in the cause of Allah and do not

have sufficient funds to achieve their purpose.Those upon hom 9a"" had become obligatory but did not perform it andno longer possess the means to ma'e 9a""


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ELIGIBILITY CRITERIA

Must be a person capable of possessionCannot be spent on Masajid, schools, hospitals, burial

expenses etc.

Must be an adult

Parents/Guardians may accept on behalf of minors

Must be Muslim to receive Zakat

Sadaqatul Fitr & Udhiyyah meat may be given to non

Muslims

Cannot be given as wages or remuneration for anywork

Must not be from the family of Banu Hashim


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IJKGKLKJKTM KTIKP

&a'at may notbe given tofather, grandfather, mother,grandmother, sons, grandsons, daughters and granddaughters.

&a'at canbe given to brothers, sisters, nephews, nieces#brothersFand sistersF children$, uncles, aunts#both paternal and maternal$,

step-grandfather, step-grandmother, father-in-law, and mother-in-law, cousins etc.

A child of a ealthy father cannotbe given &a'at. !hen such achild becomes mature in age, and does not on ealth equivalentto the value of the %isab, he may then be given &a'at.

!hen giving &a'at, Sadaqah #charity$, etc., oneFs poor and needyrelatives should be given preference as there is double reard in it.


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THE MEANING BEHIND

ZAKAT

Affects three areas: Morale

Economy

Social Surroundings

Protection for the Hereafter Wealth do not belong to us

The More You Give, The More You

Receive!

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