TYPES OF WEALTH ON WHICH ZAKAAT ARE IMPOSED:
Gold and silver, in any form
Cash, bank notes, stocks, bonds etc.
Merchandise for business, equal to the value of Nisaab
Livestock
On income derived from rental business
CALCULATION OF ZAKAAT
To calculate Zakaat on jewelry, etc. one must first determine the gold or silver content and then calculate the Zakaat according to current market price.
If the Gold possessed is less than 87.48 grams or if silver possessed is less then 612.36 grams, but the value of both combined is equal to or exceeds the Nisaab of either Gold or Silver, the Zakaat will be due.
In the event of an article not being of pure gold or pure silver, but containing a mixture of other metals and the gold or silver content is more than the other metal, it will be regarded as gold or silver and Zakaat will be due. But in the case where other metal/s is of greater quantity than either gold or silver, Zakaat will not be due on this article.
For stocks (shares held in a company), Zakaat is calculated based upon the current market value. As machinery, land, fixtures and fittings, furniture, buildings etc. are exempt from Zakaat, one is allowed to subtract these from the total asset. This could be obtained from annual reports. For example, if one has shares worth R1000 and machinery, land etc., are worth 5% of the total asset, then deduct R50 for these assets, afterwards deduct the liabilities of the company proportionately to the percentage of shares held. Zakaat must be calculated on the balance.
DISTRIBUTION OF ZAKAAT
Zakaat should be given as soon as possible after it becomes due.
All of the Zakaat can be given to one person or to several persons.
A poor man cannot be paid for his work from Zakaat nor can Zakaat be given in payment of services, except to the people appointed by the Islamic government to collect Zakaat.
Zakaat will only be valid if the recipient is made the owner of that amount. If, for example, a few needy persons are fed a meal from Zakaat money, then Zakaat will not be fulfilled as they were not made owners of the food.
Zakaat cannot be given for the construction of Masjid, Madrasah, Hospital, a well, a bridge or any other public amenity.
Zakaat can be paid in kind from the same merchandise on which it is due, or alternatively, it could be paid in cash.
TYPES OF WEALTH ON WHICH ZAKAAT ARE NOT IMPOSED:
On any metals other than gold or silver.
Fixtures and fittings of a shop, car, trucks or any delivery vehicle etc., which is used in running business.
Diamonds, pearls, other precious or semi-precious stones, which are for personal use.
There is no Zakaat on personal residence, household furniture, pots and pan, personal clothing, whether they are in use or not.
There is no Zakaat on a person whose liabilities exceeds or equals his assets. Some Mortgage in this country is not to be counted as personal liability for the Zakaat purpose.
RECIPIENTS OF ZAKAAT:
The recipients of Zakaat, according to Qur'an are as follows: "Alms are for the poor and the needy, and those employed to administer (the funds); for those whose hearts have been (recently) reconciled (to truth); for those in bondage and in debt; and for the wayfarer: (Thus is it) ordained by Allah, and Allah is full of Knowledge and Wisdom." (Qur'an 9:60)
FUQARA: people who are poor and who possess more than their basic needs but do not possess wealth equal to Nisaab.
MASAKEEN: people who are destitute and extremely needy to the extent they are forced to beg for their daily food rations.
AL-AMILEEN: people appointed by an Islamic Government to collect Zakaat.
MU-ALLAFATU-QULUB: persons who have recently accepted Islam and are in need of basic necessities who would benefit from encouragement by Muslims which would help strengthen their faith.
AR-RIQAAB: slaves who are permitted to work for remuneration and have an agreement from their masters to purchase their freedom on payment of fixed amounts.
AL-GHAARIMEEN: persons who have a debt and do not possess any other wealth or goods with which they could repay that which they owe. It is conditional that this debt was not created for any un-Islamic purpose.
FI-SABILILLAH: persons who have to carry out an obligatory deed which has become obligatory on them and subsequently (due to loss of wealth) are unable to complete that obligation.
IBN-US-SABEEL: persons who are travelers and during the course of their journey do not possess basic necessities, though they are well to do at home. They could be given Zakaat in order to fulfill travel needs to return home.
PERSONS WHO CANNOT BE GIVEN ZAKAAT:
Zakaat cannot be given to the descendants of Rasulullah (sallal laahu alaihi wasallam);
Zakaat cannot be given to parents and grandparents. In the same manner one's children and grandchildren cannot be given Zakaat. A husband and wife cannot give Zakaat to each other.
Zakaat contributions cannot be given to such institutions or organizations who do not give the rightful recipients possession of Zakaat, but instead use Zakaat funds for constructions, investment or salaries.
THE PUNISHMENT FOR NOT GIVING ZAKAAT:
Allah says in the Qur'an: "And there are those who hoard gold and silver and do not spend it in the way of Allah, announce to them a most grievous penalty (when) on the Day of Judgment heat will be produced out of that wealth in the fire of Hell. Then with it they will be branded on their forehead and their flanks and backs. (It will be said to them) This is the treasure which you hoarded for yourselves, taste then the treasure that you have been hoarding."
