"Take a charity from their wealth in order to purify and sanctify them" - Quran
What is Zakat?
- Zakat generally is defined as the portion of a one's wealth, which is designated for the poor.
- Zakat is derived from the Arabic root "Zaka" which means "to grow", "to purify", and to bless.
- Accordingly, the act of giving zakat means purifying one's wealth to gain God's blessing in order to grow in righteousness.
- Zakat is calculated as 2.5% of one's valuables and savings held for a full lunar year if their total value is more than a basic minimum known as Nisaab.
- Zakat is also applicable in a varying rates on livestock, agricultural produce and mining.
Intention (Niyyah)
Zakat is a religious duty and an act of obedience to God; it must be given with a clear intention (Niyyah) that the payment being made is the Zakat, in order for the obligation to be properly fulfilled
Time of paying Zakat
Time of paying Zakat Zakat must be paid on the day that its due (at the end of the lunar year ) or before it. Failing to pay one's Zakat as it is due is considered a refusal to submit to the wishes of God
How to Calculate your Zakat of money?
- The Nisaab is 85 grams of gold which is currently equivalent to $1150, or the comparable amount in any other currency
- The broad categories of zakatable assets are listed in the table below as well as a space for the entry of any liabilities
A. To calculate your Zakatable Total add the values of the zakatable assets you own, then subtract the values of your immediate debts (overdraft, credit card, etc., but not mortgage)
B. If your Zakatable Total is equal to or exceeds the value of Nisaab, and is held for a full lunar year, then you must pay Zakat
C. Zakat Amount is 2.5% of Zakatable Total
